Six democratic members of the Senate Banking Committee have written a letter insisting that Meta should do more to curtail the pernicious influence of crypto ads on social media platforms.
US senators are not at all convinced that Meta is taking the risk of cryptocurrency scams proliferating on its platforms seriously.
The Federal Trade Commission (FTC) said that 49% of complaints received between January 1, 2021 and March 31, 2022, were related to cryptocurrency scams on social medias. The scams had cost consumers a collective $417m during the period.
It’s possible that many consumers have not actually raised the issue with FTC, so the real numbers can be much higher.
The senators stated in their letter that Meta’s platforms were “popular hunting grounds” for scammers who are looking to target vulnerable investors who may be tempted to place their money into something that is designed to defraud them.
As a result, the senators insist that Meta should introduce stricter policies on how crypto scammers can be found and removed from the platform.
Meta has come under scrutiny from regulators, as the company was found to be dealing poorly with a range of issues, including scams, and even meddling in US politics.
Scams have become so ubiquitous that they have cost Australian consumers $252m since the beginning of the year.
Popular cryptocurrency influencer FatManTerra even set up a quick crypto scam to teach followers a lesson not to trust crypto investments too easily.