Friday, March 31, 2023
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Democrats caution that Facebook and Instagram are “breeding grounds” for cryptocurrency scams

The Washington Post reported on September 9 that U.S. senators have requested information from Meta CEO Mark Zuckerberg regarding the company’s procedures for dealing with the increasing number of cryptocurrency frauds on Facebook and Instagram.

According to a survey released by the FTC in June, 50% of victims of cryptocurrency scams since 2021 have said they were defrauded on social media. Facebook and WhatsApp were mentioned 26% and 9% of the time, respectively, while Meta’s Instagram was used in 32% of the reported scams.

The Federal Trade Commission (FTC), in a recent investigation, found that crypto frauds had considerably expanded across social media sites controlled by Meta. This is why the lawmakers made the call.

Robert Menendez, a senator, spoke to The Washington Post:

The MPs have requested a thorough report from Meta CEO Mark Zuckerberg on the company’s efforts to combat cryptocurrency fraud and the procedures it takes to help victims of theft. By October 24, 2022, Zuckerberg is anticipated to answer to the request.

“We are worried that Meta provides a fertile environment for bitcoin fraud that causes significant harm to consumers,” the statement reads. “Based on recent instances of frauds on other media platforms and apps.”

Bitcoin phishing on social media
Cryptocurrency has proliferated as a popular method of payment for social media users. Unfortunately, dishonest people have stolen hundreds of millions of dollars from trusting individuals.

Over 95,000 people lost nearly $770 million, according to an FTC investigation, to social media-engineered cryptocurrency schemes. Investment, romance, or internet shopping frauds made up more than 70% of the reported scams.

According to a BBC report from 2021, in the first three months of that year, 10,500 victims lost more than $18 million as a result of giveaway scams. The majority of giveaway frauds are carried out by people posing as well-known people like Elon Musk. After submitting 10 BTC to a fake Elon Musk giveaway hoax in February 2021, a victim reportedly lost more than $550,000.

Taking note of the growing popularity of cryptocurrency frauds on social media, FatManTerra recently launched a hoax investment prank in which unaware individuals sent him over $100,000. In addition to refunding individuals who were duped, FatManTerra utilised the situation to warn the community about hoping for a free launch in cryptocurrency.

News Summary:

  • Democrats caution that Facebook and Instagram are “breeding grounds” for cryptocurrency scams
  • Check all news and articles from the latest Business news updates.
Patrick Huston
Patrick Huston
As a senior editor, Patrick is a professional who is in charge of putting out business news. As a senior editor, Patrick is likely to be in charge of the duties of junior editors and writers, make sure the content is correct and high-quality, and work with other departments to make sure the business news is published on time. Patrick knows a lot about business and the latest market trends. He uses this knowledge to choose and edit stories that are both interesting and useful to readers. He also works with reporters and analysts to come up with insightful pieces that help readers keep up with the latest business news. Patrick is a very important part of keeping the public informed and interested in important business issues. He is passionate about journalism and strives for excellence.

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