Topline: As Facebook faces skepticism from regulators that it can handle launching its cryptocurrency Libra, a raft of fake accounts and scams purporting to sell Libra have cropped up on its own platform, according to the Washington Post.
- At least a dozen fake pages and websites on Facebook and Instagram claim to be associated with Facebook’s Libra, which has yet to be officially launched.
- One video offered a discount on Libra coins that have been distributed to early investors. Another linked to a realistic-looking fake website called “buylibracoins.com.” The website remains online.
- The scams even spread to YouTube and Twitter, according to the Washington Post.
- Facebook says Libra will allow people to send money to each other without a traditional middleman, such as a bank. A digital wallet, called Calibra, will also be available as a stand-alone app on Facebook Messenger and WhatsApp.
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A Facebook spokesperson told Forbes that it “removes ads and Pages that violate our policies when we become aware of them, and we are constantly working to improve detection of scams on our platforms.”
Key Background: In 2018, Facebook banned advertisements involving cryptocurrency or initial coin offerings to combat the proliferation of scams and bogus ICOs cropping up as the price of Bitcoin soared. Over the last few months, Facebook has been softening the ban in the run up to the announcement of Libra—and it appears scammers are taking advantage. Libra scams may not help Facebook convince lawmakers and regulators that it can protect user privacy and prevent the digital currency from being used in criminal activity. Facebook has already eroded the trust of both Republicans and Democrats on Capitol Hill after scandals involving the spread of disinformation and a failure to safeguard user data.
Tangent: Facebook recently created a crypto scam reporting tool in the U.K. after a journalist named Martin Lewis sued the company for failing to removing fake crypto ads using his name and image. The case was settled out of court.
Source: Forbes (https://www.forbes.com/sites/rachelsandler/2019/07/23/facebook-is-already-dealing-with-scams-for-its-own-cryptocurrency/?utm_source=newsletter&utm_medium=email&utm_campaign=forbes-crypto&mkt_tok=eyJpIjoiTW1WbFpUQm1PVGhqWWpSbCIsInQiOiJBWSt0S2FyUlFcLzNqcnVTblRsRFNxeHprRnZLWkZvaWxHR2QzYlZDYWJFRlwvYVhvaGxJUEV5TUZmZTM0UmhpWEtIWWxaT2JTbU9zZHd5Mld2cmlMWnJ3PT0ifQ%3D%3D#4e43d3ea477a)