Crypto scam ads promising significant returns have been prevalent on social media platforms like Facebook for years, yet little progress has been made in stopping them. Each week, the number of these deceptive ads and the unsuspecting victims losing substantial amounts of money continues to grow.

These scams are often found on trusted social networks such as Facebook and X. Both platforms are struggling to protect their users from fraudsters who lure them with seemingly legitimate crypto investments. Many of these fake ads mimic official news sites and include false quotes from celebrities to appear credible. Despite being quickly removed after being reported, new scam ads frequently emerge, making it a constant battle.

The Scale of the Problem

High-profile individuals are increasingly frustrated with their names and images being used in scam ads, leading some to take legal action. For instance, Martin Lewis, a British journalist known for his personal finance advice, sued Facebook in April 2018 for defamation. He aimed to pressure the company to improve its efforts in preventing these ads. By January 2019, he reached a settlement that included a $3.8 million donation to a new project focused on combating scams. Despite these efforts, Facebook users worldwide continue to encounter these dangerous ads.

In a similar case, Australian billionaire Andrew Forrest has been given the green light to sue Meta, claiming that Facebook profited from scam ads. Forrest alleges that thousands of people lost millions of dollars due to over 1,000 ads on the social network last year. Meta’s attempt to dismiss the case based on Section 230 of the Communications Decency Act was rejected by a judge.

How Are These Scams Happening?

Scammers often bypass Facebook’s detection systems by initially launching ads that appear legitimate, then quickly redirecting users to fraudulent sites. Facebook claims it is taking action to stop this technique. Scam ads have also become more common on X since Elon Musk’s takeover, sometimes making the platform nearly unusable. Malicious actors have even taken over accounts with millions of followers to promote scams. Recently, rapper 50 Cent revealed that his X profile and website were hacked to promote a crypto pump-and-dump scam, resulting in $3 million being made in 30 minutes.

What Can Be Done?

To combat these scams, regulators may need to impose stricter policies. In the U.K., a proposed policy could fine social networks 10% of their global annual revenue if they fail to protect users. This could incentivize platforms to take more serious measures. Additionally, while artificial intelligence is used to create these scam ads, AI tools could also be utilized to detect and eliminate them before they spread. Meta has mentioned that scam ads are becoming increasingly sophisticated and has made it easier for users to report fake ads. Meanwhile, X claims its teams work tirelessly to safeguard the platform.

Unfortunately, the issue of crypto scam ads is likely to worsen before it improves. To stay updated on the latest developments in the crypto world, explore more news on Global Crypto News.

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