Crypto Fraud and Meta? Zuckerberg is in Hot Water Again

According to the Washington Post, Democratic Senators Robert Robert Menendez, Sherrod Brown, Elizabeth Warren, Dianne Feinstein, Bernie Sanders, and Cory Booker requested that Zuckerberg take extra measures to detect crypto scams and coordinate with law enforcement to assist victims of fraud. 

They are also asking him to provide a detailed overview of the Meta’s policies regarding cryptocurrency fraud.

“Based on recent reports of scams on other social media platforms and apps, we are concerned that Meta provides a breeding ground for cryptocurrency fraud that causes significant harm to consumers,” the senators, led by Sen. Robert Menendez (D-N.J.), wrote in a letter shared exclusively with The Technology 202. 

They also cited a Federal Trade Commission report from June, which described social media as a hotbed for crypto fraud. As per that report, roughly half of the $1 billion worth of crypto-related scams in 2021 — the majority of which were focused on investments — originated from social media platforms:

Nearly four out of every ten dollars reported lost to a fraud originating on social media was lost in crypto, far more than any other payment method. The top platforms identified in these reports were Instagram (32%), Facebook (26%), WhatsApp (9%) and Telegram (7%),

it states.

The Senators also suggested that Meta warns its users in other languages than English to make sure that all audiences understand the potential risks. The lawmakers have requested Zuckerberg’s response by Oct. 24 the latest.

Previously, The Coinomist reported that Meta is looking to launch its own cryptocurrencies and offers virtual clothes by Mark Zuckerberg.