U.S senators urge Meta to protect consumers from crypto scams

U.S senators recently wrote a letter to Meta CEO Mark Zuckerberg urging him to come up with solutions to combat cryptocurrency scams on its social media platforms ahead of its NFT feature launch.

The Crypto market is notorious for phishing scams, which have prevented many people from buying tokens or switching to the digital economy. Many countries have crypto bans for the same reason.

Robert Menendez and Bernard Sanders, along with 4 other senators filed a joint letter to Meta stating that the company should protect consumers from the scams on Facebook, Whatsapp, and Instagram.

Meta has previously accepted the apparent risks of promoting NFTs, cryptocurrency, and DeFi on its platforms; however, it has shown no improvements to prevent scams, the letter reads.

“From January 1, 2021 through March 31, 2022, 49% of fraud reports to the FTC involving cryptocurrency specified that the scam originated on social media,” the letter quoted.

The senators asked Meta to provide details about its policies to detect scams, list crypto ads, and educate users. Also, whether it will collaborate with law enforcement to crack down on scams.

The USA has been actively pursuing the regulatory aspect of the crypto and blockchain industry. Seeing the rising crypto adoption has led the senators and administration to look over its regulations.

According to the letter, the consumers have reported scams taking place on Meta platforms; 32% on Instagram, 26% on Facebook, and 9% on WhatsApp.

Meta has failed to regulate which has resulted in the massive spread of misinformation, especially during the COVID-19 and Russia-Ukraine War updates. The same could be possible for crypto as well.

Knowing that the money is involved, phishing attacks are most likely to increase as Meta introduces more features for blockchain and NFTs on its platforms. Therefore, strict policies are mandatory.

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