Facebook and Instagram are fraudsters’ preferred mediums for get-rich-quick “investment opportunities” and purchases of non-existing or misrepresented items. When will Zuckerberg do something about it?

The London-based fintech company and neo-bank Revolut has released a warning specifically targeting Meta platforms, naming Facebook, Instagram, and Whatsup as primary mediums for digital frauds in 2023 and this year so far. 

Revolut said in a recent press release that Meta platforms represent a “hotbed” for get-rick-quich “investment opportunities” and purchase crimes, which have reached alarming heights. 

The conclusion comes after an assessment of data from its financial app, which is currently used by 35 million people worldwide.

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Revolut's latest scam data for 2023 reveals that a staggering 60% of reported scam cases in the United Kingdom originated from Meta platforms. This marks a significant escalation from the 52% reported cases in the first half of the year, reaching a concerning 66% by the end of December 2023. The data underscores the growing role of Meta platforms as primary facilitators of scams, the company notes, sounding an alarm for both users and regulatory bodies.

Investment scams and purchase scams were identified as the two predominant types of fraudulent activities targeting individuals. Investment scams, promising "get-rich-quick" opportunities in exchange for substantial monetary investments, constituted 59% of all money lost to scams in 2023.

On the other hand, purchase scams, where individuals are duped into buying non-existent or misrepresented items, were the most common, accounting for 50% of UK scam cases.

Revolut's findings also shed light on the preferred modus operandi of fraudsters, with a staggering 86% of all scams in the second half of 2023 being committed online. In contrast, scams carried out over the phone represented a mere 11% of reported cases. The digital landscape, especially Meta platforms, has become a breeding ground for criminals seeking to exploit unsuspecting victims.

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Woody Malouf, group head of financial crime at Revolut, urged caution among users, particularly advising against falling for "investment opportunities" promoted through Meta platforms. He acknowledged the necessity of addressing the issue at its source, highlighting that banks and financial institutions should act as the last line of defense, not the only one, and regulators acting bolder to prevent the crimes.

Meta linked to child abuse

Last January, Avast Software, a Czech multinational cyber security software developer, also warned the users of its products that there was “a worrying trend in the frequency of financial scams on social media sites life Facebook and Instagram.”

Avast described the types of scams and shared recommendations what to do in order to avoid getting caught in a scam.

In late 2023, a Wall Street Journal investigation said Instagram and Facebook actively promoted accounts associated with pedophilia, as if for Meta CEO Mark Zuckerberg the avalanche of accusations of user privacy breach, promotion of disinformation, and deception of advertisers were not enough.

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The WSJ cited, among others, the Canadian Centre for Child Protection, which discovered Instagram accounts with up to 10 million followers livestreaming videos of child abuse. Additionally, there are Facebook groups with hundreds of thousands of users openly celebrating incest and inappropriate content involving children, the WSJ's investigation claims.

The Wall Street Journal has produced the investigation in collaboration with collaborated with researchers from Stanford University and the University of Massachusetts Amherst. It revealed, for example, that Instagram's algorithms were linked to a widespread network distributing underage explicit content and Facebook is still plenty of communities sharing child abuse content.

Last fall, Norway banned Instagram and Facebook over illegal advertising behavior and fined Meta. 

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