Just a bad click and you’re done. Facebook has opened the door to fraudulent advertisements for cryptocurrencies

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Cryptocurrencies have experienced another turbulent period in the last year. However, with the growing popularity, the attention of fraudsters, who already “traditionally” use cryptocurrencies as a tool for their enrichment by robbing other people, also grew.

We have argued that many use sophisticated methods to deceive their victims in a separate article, where we again mentioned fraud on behalf of celebrities and companies.

Meta (formerly Facebook) has reopened the door to cryptocurrency advertising on its platform. However, she does not want to lose the profits that crypto-exchanges or advertising projects can pay her. But then there is the other side of the coin, which is the fraudsters just mentioned.

They are like poppies all over Facebook and they happily pay for fraudulent ads, even if they clearly violate the rules of the platform. And what about that? Well, somehow “classically” does not notice similar posts for a long time, until they are pointed out by someone “higher” than an ordinary user.

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Fraudulent advertisements for cryptocurrencies have spread on Facebook

There seems to be no need to explain again that Facebook is displaying ads based on user preferences and user data. Over time, as I was an editor and interested in the cryptomen world, Facebook collected data so that it could later display cryptomen-related ads. Well, it wasn’t just any ads.

In addition to paid contributions to trusted and well-known cryptobourses, I also encountered fraud that could deceive a less experienced user (understand turning to money). These were mostly fake advertisements on behalf of well-known companies and celebrities.

The ads that appeared on my bulletin board misused the names of Amazon, Tesla and their founders, but did not protect themselves from promoting the names of well-known media such as The Guardian, CNBC and others. All you had to do was change the name slightly, remove the space or add a letter, and the scam was born. Surprisingly, Facebook approved such an advertisement and spread it among people.

Freepik (Editing)

This is despite the fact that an advertiser should meet the “strict” policies to advertise cryptome-related advertising. In fact, this kind of Facebook promotion was re-released on the platform just a few weeks ago. Since the beginning of December, it has begun to accept more permits from regulators, which are needed to run advertising for cryptocurrencies on its platform. I’ll explain.

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Advertisers need it according to Facebook rules for the promotion of cryptoreclam document, a license from the regulator to guarantee that they have a license to trade or other activities in connection with cryptocurrencies.

Before December 1, the social network accepted licenses from only 3 different regulators, after this date according to official information has expanded the list to 27 licenses from regulators from various countries, including some Asian and European countries in addition to the United States, but Slovakia is missing among them.

The regulator to advertise cryptome ads need:

  • Platforms, software applications or products known as crypto-exchanges and trading platforms. This includes, but is not limited to, spot trading, margin trading, futures or other trading instruments that include cryptomenal assets
  • Platforms, software applications or products that offer cryptome loans
  • Cryptomenic wallets that allow users to buy, sell, exchange or deposit their tokens
  • Cryptocurrency mining hardware and software

Exceptions that do not require a regulator license for Facebook ads:

  • Tax services for cryptomen companies
  • Cryptomen-related events, education and news (do not offer any cryptomen products or services)
  • News in the field of blockchain (usually pages informing about news on blockchain)
  • Services and products based on blockchain technology that are not a virtual currency, e.g. NFT
  • Cryptomenic wallets that allow users to store their cryptocurrency tokens without the ability to buy, sell, exchange, or insert tokens
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According to these rules, cryptomen exchanges and other official companies or applications would not be able to advertise without the necessary license. However, this is not a problem for trusted and registered stock exchanges and companies that are subject to regulators. However, fraudsters, in their efforts to suppress their fraudulent campaign, disguise themselves as the above-mentioned “exceptions” that do not require a license for advertising.

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