Thailand threatens Facebook over crypto scams and other fraudulent ads

The Thai government has issued a stern ultimatum to Facebook, warning that it will seek a court-issued shutdown order against the social media giant unless immediate action is taken to address the proliferation of alleged investment and crypto scam ads on its platform. The Ministry of Digital Economy and Society (MDES) has declared that over 200,000 individuals have fallen victim to deceptive ads on Facebook that promote crypto scams, fraudulent investment schemes, and fake government agencies, including the Securities and Exchange Commission.

Escalating Concerns Over Scam Ads

The MDES has raised serious concerns about the extent of the issue, indicating that more than 200,000 people have fallen prey to misleading advertisements that promise unrealistically high returns and false investment opportunities. The scams encompass various tactics, such as crypto investment and trading schemes. In some instances, scammers reportedly employed images of celebrities and well-known financial figures, accompanied by promises of daily returns as high as 30%, all aimed at enticing victims into their fraudulent schemes.

Ministry’s Attempts to Address the Issue

MDES Minister Chaiwut Thanakamanusorn revealed that the ministry had engaged in discussions with Facebook, which is owned by Meta, and had sent a formal letter regarding the rampant scam ads. However, the minister contended that Facebook’s efforts to screen and filter advertisers have fallen short, failing to tackle the mounting issue of deceptive content effectively.

Gathering Evidence and Legal Action

The MDES has embarked on accumulating substantial evidence of fraudulent advertisements. As of now, the ministry has identified and documented over 5,300 of these malicious ads. With the end of the month as the timeline, the MDES is poised to proceed with a compelling legal stance. The ministry has indicated its intention to approach the court with a request to shut down Facebook’s operations within seven days unless swift measures are taken to mitigate the spread of scam ads.

Red Flags and Cautionary Advice

The ministry has issued a series of red flags and cautionary advice for consumers in light of these scams. Prospective investors are urged to exercise caution when encountering promises of exceptionally high and guaranteed returns. Ads featuring images of well-known figures should also be scrutinized, as scammers often exploit the credibility of recognizable personalities. Moreover, the ministry advises the public to approach investment opportunities that pressure individuals to act swiftly or offer limited-time offers skeptically. Businesses or platforms lacking verifiable information should also raise concerns and warrant careful evaluation.

As Thailand is proactive against fraudulent activities within its digital landscape, the onus remains on platforms like Facebook to enhance their vigilance in monitoring and curbing deceptive content, safeguarding their users from potential financial harm.