Thailand contemplates action against Facebook over crypto scams

• Fraudulent Facebook adverts, including crypto scams, defrauded over 200,000 people in Thailand.
• The ministry had previously asked Facebook to remove more than 5,301 fraudulent ads.

The authorities in Thailand were contemplating action against Facebook, Meta’s social media platform, due to the growing threat of crypto scams and other investment frauds.

According to Thailand’s Ministry of Digital Economy and Society (MDES), fraudulent Facebook adverts, including crypto and investments scams, defrauded more than 200,000 people in the country.

These fraudulent adverts promised daily returns of up to 30%. They even illegally used the photographs of celebrities and noted figures from the financial industry as fake endorsements. Some adverts even used the titles and symbols of the Thailand Securities and Exchange Commission (SEC) and the Stock Exchange of Thailand to demonstrate credibility.

MDES Minister Chaiwut Thanakamanusorn stated that the ministry has been in discussions with Facebook about the presence of fraudulent ads on the platform. The ministry also sent a letter to the platform. The ministry had asked Facebook to remove more than 5,301 fraudulent ads.

However, the social media company didn’t take any action against such fake adverts promoting crypto scams.

If Facebook again fails to take action against such ads and rectify the overall damage valued at $2.8 million, the ministry will pursue a court-issued shutdown order against the platform within seven days.

MDES has warned the general public to be aware of exorbitant, promised profits. Furthermore, it has emphasized the importance of being wary of adverts that feature photographs of celebrities. Images of well-known figures are frequently used to gain public trust.

Furthermore, the ministry advises people to be cautious when interacting with businesses or platforms that lack verifiable credentials.

Thailand gets cautious about crypto

Thailand’s recent regulatory initiatives emphasize a cautious attitude to cryptocurrency. The SEC has increased its efforts to protect investors against crypto scams.

Due to the inherent volatility of crypto, the Thai authorities recently enforced risk-related disclosure for all crypto trading platforms. They have stringent guidelines against deceptive crypto marketing.

Crypto platforms need to emphasize correct information and necessary cautions about the risks of crypto investments.

Last month, the SEC announced a ban on crypto lending services.

As of January 2023, Facebook had about 48.1 million users in Thailand, making it the social media platform’s eighth-largest market.