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US Senators Question Mark Zuckerberg on Crypto Scam Policies for Meta Apps

UTC by Darya Rudz · 3 min read
US Senators Question Mark Zuckerberg on Crypto Scam Policies for Meta Apps
Photo: Anthony Quintano / Flickr

According to Andy Stone, Meta spokesperson, Meta has invested “significant resources to detect and prevent scams.” Now, Mark Zuckerberg has a deadline until October 24 to prepare a detailed report about Meta apps’ policy.

Meta Platforms Inc (NASDAQ: META) CEO Mark Zuckerberg is in hot water as six US Senators are pressing the entrepreneur for crypto scam cases that take place on Meta’s platforms, including Facebook, Instagram, and WhatsApp. Robert Menendez, Sherrod Brown, Elizabeth Warren, Dianne Feinstein, Bernie Sanders, and Cory Booker have reportedly sent a letter to Zuckerberg, asking him what measures had been taken by the companies mentioned to prevent the scams.

US Senators Place Mark Zuckerberg Under Pressure

In their letter, the Senators have provided some statistics shared by the Federal Trade Commission:

“While crypto scams are prevalent across social media, several of Meta’s sites are particularly popular hunting grounds for scammers. Among consumers who reported being scammed out of cryptocurrency on a social media website, 32% identified the scam as having originated on Instagram, 26% on Facebook, and 9% on Whatsapp.”

According to Andy Stone, Meta spokesperson, Meta has invested “significant resources to detect and prevent scams.” Now, Mark Zuckerberg has a deadline until October 24 to prepare a detailed report about Meta apps’ policy and demonstrate to Senators how these resources were distributed.

During the first seven months of this year, crypto hackers have stolen as much as $1.9 billion worth of cryptocurrency, which is a 37% increase from the same period last year. Speaking of social media cryptocurrency scams, they are just what they sound like: they occur over social media. This can be done via a false social media post or advertisement requesting payment in cryptocurrency. You might even see other users responding to the post or leaving reviews. In reality, these could be bots. The post might even be from a friend whose account has been hacked.

Data Policy Breach on Meta Apps

Between 2021 and 2022, as many as 46,000 people became victims of crypto scams on Instagram, Facebook, and WhatsApp. According to the analysis from the Federal Trade Commission, Instagram is the most common platform where crypto scams occur. A prime example of such an accident has been a Bitcoin investment scheme. To gain the victim’s trust, scammers trick users into believing they can track their Bitcoin through Instagram. However, this information is fabricated. Another scam involves people offering followers for Bitcoin. The seller promises that the buyer will receive 10,000 new followers within 24 hours after payment is received. Besides, scammers can use fake giveaways. They post a fake advertisement, instructing users to send them a small amount of money in order to get the free tokens.

Recently, we reported about Ireland charging Instagram for violation of personal data policy. Instagram users, including those under 18, were switching to business accounts, with their contact information displayed on their profiles. This confronts the EU privacy rules introduced in 2018.

Facebook has also been sued for running ads that encouraged users to invest in cryptocurrency and other money-making schemes that actually turned out to be scams.

As the number of crypto scams is increasing, the authorities are warning to be careful and not to believe that you can easily get fast profits that the scammers promise.

Cryptocurrency news, Cybersecurity News, News, Social Media, Technology News
Darya Rudz
Author Darya Rudz

Darya is a crypto enthusiast who strongly believes in the future of blockchain. Being a hospitality professional, she is interested in finding the ways blockchain can change different industries and bring our life to a different level.

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