Huge losses. Facebook should block fake cryptocurrencies ads!
According to itnews, a Dutch court ordered Facebook to remove advertisements that illegally use the image of public figures to promote cryptocurrencies fraud.
Unfair investment programs on Facebook
A lawsuit against the social media giant was filed in June by John de Mol, a local billionaire and television producer. Interestingly, his testimony shows that he has repeatedly asked Facebook to withdraw inappropriate advertising, but he has not received any response in this case. These actions had unpleasant consequences for investors who consider him an authority. As a result of the promotion of many investment programmes illegally using the image of public figures on Facebook, users have lost a total of around EUR 1.7 million. In his lawsuit, John de Mol demanded that the social media giant take action as soon as possible to prevent such situations in the future.
The court ordered Facebook to immediately withdraw all harmful advertising and threaten to pay a fine of €1.1 million if it fails to fulfil its obligations. In addition, the argument of the social media giant was found to be unacceptable. Advertising plays a very important role for Facebook as its core business model and should be its responsibility. It is also obliged to provide the authorities with all the information about the people behind the fraud.
During the hearing, Facebook informed about the fact that it had already removed all dishonest advertisements, and is considering legal action in this area and appeal. John de Mol expressed his hope that the company would make every effort to prevent such situations from happening again. Due to the fact that it is the main social media channel, the losses caused by the promotion of scam investment projects are enormous.
As it turns out, however, this was not the first time that the image of a Dutch billionaire was used to promote false investment programs. According to information published by Cointelegraph, this was already the case in October 2018.
Recall that for some time the social media giant was blocking all advertisements related to crypto-currency, but this year it changed its approach. Perhaps it was caused by the fact that in the future he himself will want to advertise the Libra project, if it is launched.
How to recognize fraud?
Unfair investment programs are increasingly based on the image of celebrities or other people who have a significant impact on society. In such cases, special care must be taken, especially when someone offers unbelievable profits in a short period of time and therefore guarantees them. The crypto-currency market is volatile and no one can promise you that you will not lose your capital.
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