Crypto Scam: U.S. Senators Ask Mark Zuckerberg What Meta Is Doing To Stop It

Crypto scam is always a pain the neck, especially for these guardians of the law. They want answers and as part of their inquiry, they’re turning their attention to the world’s 16th wealthiest man.

Democratic senators from the United States Senate questioned Mark Zuckerberg, the chief executive officer of Meta, about the company’s procedures for combating cryptocurrency fraud.

The Washington Post reports that Democrats in the US Senate want more details from Meta about how the company deals with cryptocurrency scam, claiming the company’s platforms are fertile ground for con artists.

Bob Menendez of New Jersey leads the group of senators, which also includes Sherrod Brown of Ohio, chairman of the Banking Committee, and Elizabeth Warren of Massachusetts.

Several of Meta’s sites are especially popular hunting grounds for scammers, the Senators said, despite the fact that “crypto scams are prevalent across social media.”

Image: PCMag

Instagram Top Site For Crypto Scam?

Around 32% of consumers who reported being swindled out of cryptocurrency said that the fraudulent activity occurred on Instagram, followed by 26% on Facebook and 9% on WhatsApp.

The lawmakers cited a June 2018 Federal Trade Commission report that described social media and cryptocurrencies as “an explosive combination for fraud.”

According to the FTC report, social media platforms were the source of roughly half of the $1 billion in cryptocurrency-related scams in 2021, with the majority involving investments.

Legislators inquired as to whether Meta offers “warnings or educational materials about crypto scams in languages other than English.”

Andy Stone, a representative for Meta, stated that the scams violate company policy and harm its business. Therefore, it invests “considerable resources to detect and prevent fraud.

$1 Billion Lost To Con Men

According to a report published by the FTC in June of this year, over 46,000 people have reported losing more than $1 billion in cryptocurrency to fraudsters since the start of 2021. These cons include, to name a few, Bitcoin investment schemes, rug pulls, romance scams, and phishing.

Bitcoin (70%), tether (10%), and ether (9%), according to the FTC, were the top three cryptocurrencies used to pay off scam artists.

Nearly $4 out of every $10 reported lost to fraud that began on social media was in cryptocurrencies, far more frequently than any other payment method.

According to these reports, the leading platforms are Instagram (32%), Facebook (26%), WhatsApp (9%) and Telegram (7%).

However, Meta platforms are not the only locations where crypto scams are commonplace. Twitter has also received numerous complaints about crypto fraud and bots.

Recently, cybercriminals were able to perpetrate a crypto scam by streaming a YouTube video promoting phony crypto investments during a parallel Apple event.

BTC total market cap at $412 billion on the daily chart | Source: TradingView.com

Featured image from Vanity Fair, chart from TradingView.com