Benzinga - by Murtuza Merchant, Benzinga Staff Writer. Thailand's Ministry of Digital Economy and Society (DES) has issued a stern warning to Meta Platforms Inc (NASDAQ: META), urging the social media company to address fraudulent cryptocurrency investment scams proliferating on its Facebook platform.
Failure to comply could lead to Facebook being banned from the Thai market.
What Happened: DES minister Chaiwut Thanakmanusorn expressed readiness to approach the courts to shut down Facebook by the end of this month.
This move is in response to the surge in scam investments, particularly those that falsely use the name and symbols of Thailand's Securities and Exchange Commission (SEC) or the Stock Exchange of Thailand (SET).
These scams often lure investors with promises of high returns, sometimes as much as 15-30% daily, according to the DES.
The DES, in collaboration with other agencies, emphasized that neither the SEC nor the SET has offered such investments, and any information suggesting otherwise is fraudulent and designed to defraud potential investors.
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Why It Matters: Cybercriminals have been employing a variety of tactics to deceive users, ranging from promoting high-yield lending schemes to impersonating well-known financial figures, it stated and added that more than 5,300 fraudulent ads and fake pages have been identified on Facebook.
"Facebook's negligence has resulted in damages worth over 100,000 million baht to the Thai people. If Facebook wishes to continue its operations in Thailand, it must demonstrate responsibility towards Thai society," stated Chaiwut.
Facebook's inaction has affected more than 200,000 victims, accounting for approximately 95% of the 300,000 reported cases, he added.
The National Police Agency has reported the prosecution of 364 individuals in connection with fraudulent activities, including trading in unauthorized accounts and phone numbers.
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