49% of Crypto-Related Frauds Originated On Social Media – Facebook CEO Pressed

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Social media platforms like Facebook are the source of 49% of crypto-related frauds, according to a study by the Federal Trade Commission.

Meta Platforms (META) CEO Mark Zuckerberg has been asked what the company is doing to combat cryptocurrency scams on Facebook, Instagram, and WhatsApp by six Democratic senators.

Sherrod Brown of Ohio, the chairman of the Banking Committee, and Elizabeth Warren of Massachusetts form a group led by Bob Menendez of New Jersey.

“From Jan. 1, 2021 through March 31, 2022, 49% of fraud reports to the FTC [Federal Trade Commission] involving cryptocurrency specified that the scam originated on social media,” the group wrote, noting the scams cost consumers a total of $417 million.

“While crypto scams are prevalent across social media, several of Meta’s sites are particularly popular hunting grounds for scammers,” the senators added.

The group wants Meta to describe its current policies for proactively finding and removing crypto scammers, spell out its procedures for verifying that crypto ads on its platforms aren’t scams and say to what extent it collaborates with law enforcement to track down fraudsters.

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