US lawmakers warn that Facebook, Instagram are ‘becoming breeding grounds’ for crypto scams

U.S. Senators have referred to as on Meta CEO Mark Zuckerberg to element rules his employer is the usage of to deal with the growing instances of crypto scams on Facebook and Instagram, The Washington Post suggested on Sept. 9.

The lawmakers made the decision as the latest file through the Federal Trade Commission (FTC) well-knownshows that crypto scams have accelerated substantially throughout social media structures owned through Meta.

The FTC published a report in June, revealing that about 50% of the people who lost money via a crypto scam since 2021 claimed it originated on a social media platform. Meta’s Instagram facilitated 32% of the reported scams, while Facebook and WhatsApp were cited 26% and 9% of the time, respectively.

Senator Robert Menendez told The Washington Post:

“Based on recent reports of scams on other media platforms and apps, we are concerned that Meta provides a breeding ground for cryptocurrency fraud that causes significant harm to consumers.”

The lawmakers have referred to as on Meta CEO Mark Zuckerberg to put up an in depth file on how the enterprise is compacting crypto scams and the stairs it takes to help sufferers of fraud. Zuckerberg is predicted to reply to the request with the aid of using Oct. 24, 2022.

Crypto scams on Social media

Crypto has to turned out to be a not unusual place approach of charge for customers on social media. Unfortunately, awful actors have scammed unsuspecting customers of masses of hundreds of thousands of dollars.

According to the FTC report, over 95,000 customers misplaced about $770 million in social media-engineered crypto scams. Over 70% of the suggested scams had been categorized as both investment, romance, or online purchasing scams.

A 2021 study by BBC revealed that about 10,500 victims lost more than $18 million to give away scams in the first three months of 2021. Most of the giveaway scams are perpetrated by impersonating influential personalities like Elon Musk.

A victim reportedly lost over $550,000 in February 2021 after sending 10 BTC to an Elon Musk giveaway scam.

Observing the rising trend of crypto scams on social media platforms, FatManTerra recently pulled a fake investment prank that saw unsuspecting users sending him over $100,000.

FatManTerra used the incident to educate the community against looking for a free launch in crypto and refunded those who were hoodwinked by it.

I have refunded every person who sent money in full.

There was no investment.

Risk-free high yields don’t exist.

Free lunches don’t exist.

Influencers have started scamming on Twitter, and before more of them crop up, I want them to know:

We will work to take you down.

— FatMan (@FatManTerra) September 5, 2022

The post US lawmakers warn that Facebook, Instagram are ‘becoming breeding ground’ for crypto scams appeared first on CryptoSlate.

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