By Marcus David
Director of Professional Services
Most of us use Facebook, WhatsApp and Instagram every day. These platforms allow us to catch up with friends, and share photos of dinner, our families, and our pets. However, there is a darker side to these platforms, all owned by Meta.
According to a study by top U.K. bank TSB, 80% of frauds affecting their clients could be traced to Meta platforms Facebook, Instagram, and WhatsApp.
TSB analyzed internal client data between 2021 and 2022 and found frauds in all three main categories – merchant, broker, and imposter fraud mainly came from Meta.
Instagram Is Becoming Broker Scam Central
In the investment fraud category, at least among TSB clients, Instagram wins the prize. An astounding 87% of broker scams came through all Meta platforms with Instagram responsible for the lion’s share – 67%. Broker scams on Facebook were a distant second at 22%, with a mere 9% based on Snapchat.
Many of these broker frauds were bitcoin scams that capitalized on the popularity of digital currency and the lack of knowledge about crypto trading. Others involved forex, CFDs and other types of trading. These broker scams usually featured unrealistic claims and fake guaranteed ROI as well as bribes, such as bonuses, to attract novice traders.
Facebook Marketplace Scams Rise 97%
Has anyone tried to sell you something on Facebook? The answer to this question is most likely, “Yes.” Almost anyone can hawk their wares on Facebook through direct messages, ads and Facebook Marketplace.
Almost anyone can sell things on Facebook, which is the root of the problem. In the TSB study, 60% of the merchant fraud among their clients was traced to Facebook Marketplace. The scale of this type of fraud is increasing exponentially and rose 97% between 2021 and 2022.
“You Talking to Me?” WhatsApp Imposter Scams
Do you know who you’re dealing with? Maybe not if you’re using WhatsApp. This highly convenient and popular app for keeping tabs on friends and family and communicating with others can be a haven for imposters.
WhatsApp imposters may pretend to be a relative and ask you for a loan or they could persuade you they are from a company or an official organization so they can get your personal data. In the TSB study, WhatsApp accounted for 60% of imposter scams and rose an astounding 300% between 2021 and 2022.
What Can Be Done About Meta Broker Scams and Crypto Scams?
It’s not only people who are naive about tech and fraud that are getting cheated on Meta platforms. According to statistics from the United Kingdom, fraud accounted for losses of up to £7 billion yearly and affects 1 out of 15 people. These fraud victims belonged to every category, including age, income, region, gender, and profession.
Governments around the world, including the UK, are considering legislation to protect their citizens from Meta fraud and crypto scams. Some politicians are proposing laws that would ban cold calling and spamming or requiring a “report scam or fraud” button to use on Meta platforms.
In 2021, Facebook creator and Meta CEO Mark Zuckerberg testified before Congress about the company’s practices. Although little progress has been made since then, it’s more than likely that governments may continue to put the heat on social media companies and require provisions to protect users and improve vetting of potential scams.
Do You Need Fund Recovery from Meta Scams?
If you’ve mistakenly given money to an imposter on WhatsApp pretending to be a relative, never received a delivery of something you ordered on Facebook Marketplace or if an Instagram crypto scam broker has locked down your funds, you’ll need the assistance of fund recovery experts.
MyChargeBack Will Help You with Crypto Recovery
If you have lost money to a cryptocurrency scheme, seek fund recovery assistance right away. Consult with MyChargeBack experts and get started with your fund recovery claim. We have extensive knowledge and working relationships with regulators and more than 450 law enforcement agencies around the world, as well as solutions that can improve your prospects of getting your cryptocurrency back.