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Bank of Facebook Already Raising Consumer Concerns

Despite wild swings in the value of many of the most popular cryptocurrencies, it seems like every day a new e-coin is popping up. Now even Facebook is getting into the digital assets game.

The social media giant boasting more than two billion users is set to roll out its own cryptocurrency by the end of the year. Mark Zuckerberg & Co. plan to offer the coin to allow users to send and receive payments through WhatsApp, the encrypted messaging service that Facebook also owns.

The sheer size of Facebook and its following would make the coin an immediate competitor to Bitcoin, currently the world’s leading cryptocurrency. Unlike Bitcoin, the Facebook coin will likely be tied to the United States dollar or gold, a move that is likely to eliminate the rollercoaster price changes often seen in the crypto world. 

Privacy Concerns

But not everyone is ready to hop onboard the Facebook coin train, given the company’s recent struggles with privacy issues. The company is still reeling from the Cambridge Analytica scandal in which Facebook allowed the political data firm working on President Donald Trump’s 2016 White House campaign to get its hands on data for some 50 million users. That fiasco has obliterated consumer trust in Facebook, according to one recent study.

Zuckerberg has been trying to regain some of that confidence through high-profile trips to Capitol Hill and in tinkering with the company behind the scenes. He has stressed that the company understands that people want privacy. Apparently, that’s why Facebook bought WhatsApp.

“I believe the future of communication will increasingly shift to private, encrypted services where people can be confident what they say to each other stays secure and their messages and content won’t stick around forever, Zuckerberg said in a recent blog post. “This is the future I hope we will help bring about.”

Legal Protections for Consumer Fraud

The spread of digital assets has created a new venue for fraudsters to try to take advantage of people, including by trying to steal sensitive personal information and data. Although some companies may say somewhere buried in the fine print that they intend to use your personal information, those disclaimers can often be misleading or otherwise difficult to decipher.

Fortunately, state and federal laws offer a number of protections for people whose privacy has been infringed or who are victimized by a wide variety of other scams. That includes starting or joining a class action lawsuit against those responsible. These legal actions are an efficient option that allows people to leverage their combined claims without the cost of going it alone. A seasoned consumer protection attorney can help you weigh this and other options.

Speak With a Consumer Protection Attorney Today

If you or a loved one has been victimized by a privacy breach or consumer fraud scam, we can help.

At Glancy Prongay & Murray, our consumer protection attorneys have been representing people in securities, consumer and other fraud cases for more than 25 years. We have a strong track record of success in these cases. Call us at (310) 201-9150 or contact us online to speak with an attorney today.