A news report by the Washington Post published July 22 has revealed that a slew of fake social media accounts, pages, and groups have been posing as official Libra hubs. These hubs even claimed to already be selling Facebook’s controversial Libra tokens at a significant discount.
Since the report went viral, Facebook proceeded to close multiple accounts across its own platform and Instagram on grounds of their involvement in fraudulent activity and impersonation.
Fake Libra Hubs Spread Across Facebook
According to the report, most hubs offered to sell users Libra only through third-party websites. The vast majority of them even used Facebook’s logo, official Libra imagery and even pictures of Facebook CEO, Mark Zuckerberg, to deceive people into thinking that they were official Libra outlets. This onslaught of scam accounts could further increase distrust in Facebook’s cryptocurrency, which is already facing a lot of heat from regulators around the world. Eswar Prasad, an economics professor at Cornell University, pointed out the irony of Facebook’s own social media platform being used to undermine the trust of its upcoming cryptocurrency. On the other hand, Democrat senator Mark Warner said that this is another reason why Facebook should be more cautious in its approach towards Libra and not proceed to launch anything until American regulators are completely satisfied. In response to these reports, a Facebook spokesperson said,“Facebook removes ads and pages that violate our policies when we become aware of them, and we are constantly working to improve detection of scams on our platforms.”