This past April, a St. Francis woman was bilked out of $80,000 through an online crypto scam she discovered on Facebook. Eighty. Thousand. Dollars. Let that sink in. It would be all too easy to write this off as the bad luck of another, a warning marker for the gullible. I'm not here to blame her alone. It's a symptom of a much larger problem: Facebook's algorithm is actively, if unintentionally, fueling financial ruin.

Algorithm Prioritizes Profit, Not People?

Think about it. Facebook's entire business model revolves around engagement. The longer you stay addicted to their platform, the more ads they can serve you, the more they earn. And what drives engagement? Sensationalism. Outrage. Promises of quick riches. That's precisely what these crypto scams peddle. Instead, they dangle the carrot of massive returns, specifically targeting people they know are more vulnerable to their hook.

All Facebook’s algorithm knows is whether an ad is legitimate—or the equivalent of a white bag under the table for the sucker, er, mark. And it doesn’t really care about that, either, unless you’re driving them tons of clicks and shares. This combination is a perfect storm, where shady, fraudulent schemes are given more amplification, reaching more eyeballs than they ever could on their own. It’s the equivalent of handing a loaded gun to a child for their playtime and then suing when someone gets injured while playing. We have to be real with ourselves, is maximizing shareholder value really worth the price tag of people’s life savings?

Is Facebook Complicit in This Crime?

Let's be clear: I'm not saying Mark Zuckerberg is personally orchestrating these scams. But Facebook's hands aren't exactly clean. They’ve sacrificed the safety of their users for their bottom line, and people are dying as a result.

The St. Francis woman isn't alone. Countless more have been duped by other schemes, attracted by the siren song of easy riches. They are met with high-end marketing campaigns, convincing testimonials (most of which are fraudulent), and a polished, professional-looking platform. They invest their hard earned savings, only to watch it vaporize into the digital ether.

This isn't just about individual responsibility. It's about corporate accountability. Facebook has a moral obligation and legal responsibility to protect its users from these predatory practices. They haven't done enough. They should be required to invest in stronger scam detection technology. Further, they need to establish stronger advertising standards and ensure that advertisers are held accountable for their misleading advertisements.

Consider this: Facebook knows exactly who is targeting whom with these ads. They have mountains of data on user behavior, which should give them the ability to identify and prioritize vulnerable populations. With more detailed information, they can act proactively, flagging suspicious activity before it leads to victims and stopping scams in their tracks. They choose not to. Why? Because it might hurt their bottom line.

What Can Facebook Do?

  • Implement a "Know Your Advertiser" Policy
  • Invest in Better Scam Detection Technology
  • Work with Regulators to Identify and Remove Fraudulent Ads
  • Provide Users with Clear Warnings About Cryptocurrency Investment Risks
  • Actively Monitor and Remove Scam Groups and Pages

Regulation: The Only Language They Understand

I'm not usually one for government intervention. Yet in this instance, regulation is the only language Facebook appears to understand. To start, we should be calling for more rigorous regulatory oversight of social media companies, requiring accountability for the type of content they’re elevating. This is not about penalizing innovation or reinforcing censorship of protected free speech. It includes ensuring a fair competitive marketplace, where all good-faith businesses can succeed and invest the potential of their services without being sheeted home to bad actors.

We need laws that require platforms to verify advertisers, monitor for suspicious activity, and provide users with clear warnings about investment risks. We need to actually hold them liable for damages that result from their negligence. If Facebook is going to profit from running these scams, they need to be made liable for the damage they cause.

Education – consumer education, more than anything else – will prove essential. We have to educate the public on how to identify these scams and take action to avoid becoming a victim. The “too good to be true” rule is in effect here. If an investment opportunity seems too good to be true, it is. Rule #5 – Do your homework and then do some more. As always, be wary of social media hype and speak with a trusted financial advisor before investing in cryptocurrency. As the late April DeValkenaere reminded us, do your homework on a broker by visiting their broker check on FINRA.org.

The crypto scam perpetrated by St. Francis was a tragedy. It's a wake-up call. We can't afford to stand idly by while Facebook's algorithm fuels financial ruin. We need to demand change. We need to hold them accountable. We have to be better equipped to protect ourselves and our loved ones from these manipulative, predatory practices.

So, what can you do? Contact your elected officials. Demand greater regulation of social media platforms. Report any suspected scams to the authorities. And share this article to educate and help others from becoming victims as well. Let’s work together to ensure that the tragic loss of the St. Francis woman wasn’t in vain. Let's turn her pain into action.