US Senators Urge Meta CEO Mark Zuckerberg To Combat Crypto Scams
Six U.S. Senators are looking for
answers from Meta CEO Mark Zuckerberg about how his company is handling
cryptocurrency scams on social media platforms, including Facebook, Instagram,
and WhatsApp. "We are concerned that Meta provides a breeding ground for
cryptocurrency fraud that causes significant harm to consumers," the
lawmakers said.
Senators Question Mark Zuckerberg and Meta Platforms
U.S. Senators Robert Menendez, Sherrod
Brown, Elizabeth Warren, Dianne Feinstein, Bernard Sanders, and Cory A. Booker
jointly sent a letter on Thursday to Mark Zuckerberg, Chairman and CEO of Meta,
about his company’s "efforts to combat cryptocurrency scams on its social
media platforms, including Facebook, Instagram, and WhatsApp."
Citing "recent reports of scams
on other social media platforms and apps," including data from the Federal
Trade Commission (FTC), the senators wrote, "We are concerned that Meta
provides a breeding ground for cryptocurrency fraud that causes significant
harm to consumers."
"While crypto scams are prevalent
across social media, several of Meta’s sites are particularly popular hunting
grounds for scammers," the letter details. "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."
The lawmakers have asked Zuckerberg
seven questions concerning Meta’s current policies about cryptocurrency scams.
They have requested the Meta CEO to respond by October 24 with detailed
information. The questions include how the company finds and removes crypto
scammers, educates and warns users about crypto scams, and assists victims of
fraudulent crypto schemes on Meta's Facebook, Instagram, and WhatsApp. The
Senators also seek clarification on how Meta verifies crypto ads as not scams
and what regulatory licenses are required to advertise on the platforms. In
addition, they have asked to what extent Meta collaborates with law enforcement agencies to track down scammers.
U.S. authorities have been warning
that scammers are increasingly using social media to defraud investors. The
U.S. Securities and Exchange Commission (SEC) warned investors of fraudsters
exploiting their fear of missing out (FOMO) on social media in August.
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