Impact of Regulatory Measures on Social Networks: The Case of Meta in Singapore

The Ministry of Home Affairs of Singapore has issued an ultimatum to Meta, demanding better safeguards against scams on its Facebook platform, under the threat of a fine of up to 1 million Singapore dollars (approximately $775,698 USD).

Background and Regulation Details

Goh Pei Ming, Minister of State for Home Affairs of Singapore, stated during the Global Anti-Scam Asia 2025 summit that Facebook is the main tool used by scammers. This directive is issued under the new Online Criminal Damage Act of Singapore, in effect since February of last year.

“We issued this order to Meta because Facebook is the main platform used by scammers for this type of impersonation fraud. The police have assessed that more decisive action is needed to curb these scams,” Goh stated before the attendees and members of the Global Anti-Scam Alliance (GASA).

Alarming Statistics on Social Media Fraud

According to government statistics from Singapore:

• Impersonation scams nearly tripled in the first half of 2025, reaching 1,762 cases.
• Losses from fraudulent activities increased by 88%, reaching S$126.5 million.
• More than a third of all reported e-commerce scams last year were perpetrated on Facebook.

“For some victims, this could represent their life savings and fundamentally ruin their retirement plans,” Goh noted.

Meta Response and Security Measures

A spokesperson for Meta responded to the accusations, stating that the company has security measures in place to detect and eliminate impersonating accounts. The company reiterated that it has review teams working on detecting scams and protecting users through advice and tools to report suspicious activities.

Meta also mentioned that Facebook Marketplace has verification requirements for certain sellers in Singapore, along with built-in security alerts in the product. These updates were made after authorities criticized the platform for “lacking adequate consumer protection.”

Analysis of the Global Situation

A Wall Street Journal investigation in early May revealed that regulators, banks, and internal company record reviews place Meta's apps among the top contributors to the global internet fraud economy.

• Almost 50% of all scams reported through Zelle at JPMorgan Chase between mid-2023 and mid-2024 were related to Meta.
• British and Australian authorities have found similar patterns of fraud linked to Meta's services.
• An internal analysis by Meta in 2022 found that 70% of newly active advertisers on its platform were linked to scams, illicit goods, or low-quality products.

Implications for the Cryptocurrency Industry

Although this regulation focuses on traditional social networks, it has significant implications for the Web3 ecosystem and cryptocurrency platforms:

1. Increased scrutiny on decentralized platforms: Regulators are likely to extend their focus to decentralized platforms and DeFi, seeking to implement similar measures against fraud.

2. Need for self-regulation: Cryptocurrency exchange platforms may be pressured to implement more robust security measures to prevent scams and protect users.

3. Impact on Cryptocurrency Advertising: Restrictions on platforms like Facebook could affect the ability of cryptocurrency projects to advertise their services, which could lead to the search for alternative marketing channels.

4. Opportunity for secure platforms: Major exchange platforms that already have strong security measures could benefit by highlighting their fraud protections as a competitive advantage.

This situation underscores the growing importance of security and trust in the digital space, a challenge that the cryptocurrency sector must proactively address to maintain its growth and adoption.