According to the Washington Post, some fake accounts on Facebook are offering users Libra cryptocurrency. A dozen such accounts, pages, and groups are already active on both Facebook and Instagram, according to the Monday report. These accounts could target vulnerable people who may not know enough about Libra into losing their money.
Fake Account Issue Continues
WP highlights that the company is “struggling to rebuild trust and fight the fraud likely to surround the new financial system,” especially with such fake accounts offering discounted Libra will only enhance the problem. A company spokesperson stated that it “removes ads and pages that violate our policies when we become aware of them. We are constantly working to improve the detection of scams on our platforms,” as reported by CNET.
Libra Is Zuckerberg’s Biggest Gamble
Note that Facebook already has a huge problem with fake accounts, privacy management, and data management, and the company has already spent month handling one controversy after the other about its business practices. Even the US lawmakers highlighted this issue when they grilled the company’s representatives on Capitol Hill last week, raising concerns about their entry into finance.
Mark Zuckerberg’s company announced last month that it would be launching a new cryptocurrency called Libra next year alongside a digital wallet called Calibra. An independent organization will manage the cryptocurrency with 27 members, including Coinbase, Visa, PayPal, Mastercard, Uber, and more. The number of these members is expected to be 100. The coin will be used to buy products, make cross-border monetary transactions, and donate money.
However, the idea hasn’t received a positive response from governments and regulators around the world. Everyone from US President Donald Trump to US Treasury Secretary Steven Mnuchin has expressed concerns about digital coins.