Meta: Zuckerberg demanded to provide clarity on handling of crypto scams

Six U.S. senators are pressuring Meta CEO Mark Zuckerberg over crypto scams policies for Facebook, Instagram and Whatsapp.

Meta, deadline for response set for Oct. 24, 2022

Senators including Robert Menendez, Sherrod Brown, Elizabeth Warren, Dianne Feinstein, Bernard Sanders, and Cory A. Booker are concerned that Facebook, Instagram, and WhatsApp are becoming a breeding ground for scammers.

Mark Zuckerberg, CEO of Meta Platforms Group (META), was invited to answer questions from these representatives, members of the Senate Banking Committee. These senators questioned the current CEO in order to know the group’s policy in the fight against crypto scams on its platforms Facebook, Instagram and WhatsApp.

The senators wrote:

We are concerned that Meta provides a breeding ground for crypto-currency fraud that causes significant harm to consumers.

Indeed, from January 1, 2021 to March 31, 2022, 49% of fraud reports to the Federal Trade Commission (FTC) involving the use of cryptocurrencies specified that the scam came from social media” the senators report.
By a rough estimate, these scams cost consumers a total of $417 million. The group of senators adds “while crypto-scams are prevalent on social media, several Meta sites are particularly popular hunting grounds for scammers .

Specifically, Meta must clarify how it is working with law enforcement to reduce fraud.

In the letter sent by the elected officials, there are a total of seven questions that the Meta boss will have to answer. All of them boil down to the current policies set up by the American firm to limit the theft of cryptos on its platforms. The senators intend to continue with this pressure and Mark Zuckerberg will have to answer by October 24.