Australia’s competition authority has claimed that 58% of cryptocurrency ads on Facebook are fraudulent or violate Meta’s advertising policies, causing a significant stir. This serious accusation emerged from preliminary investigations by the country’s Competition and Consumer Commission (ACCC).
Meta’s Legal Battle Continues
In 2022, the ACCC sued Meta, Facebook’s parent company, for allegedly aiding and hosting cryptocurrency scam ads using celebrities’ names. Although no trial date has been set, the Commission’s latest filing claims that 58% of the reviewed ads violated Meta’s Advertising Policies or were fraudulent.
These ads are known to promote cryptocurrency investment scams using the reputations of famous Australians. Victims include businessman Dick Smith, billionaire former casino executive James Packer, Hollywood stars Chris Hemsworth, Mel Gibson, Nicole Kidman, Russell Crowe, and former politician Mike Baird.
The Serious Extent of Fraud
While exact losses from these scams are not provided, the Australian government’s Scamwatch site shows investment scams are the most effective method for Australians to lose money. By 2024, there have been 3,456 complaints related to investment scams, with losses exceeding $78 million.
The ACCC identified 600 ads during the investigation but is currently focusing on only 234. Other celebrity scams may also emerge during this process. In December 2023, Australian billionaire miner Andrew Forrest sued Meta for using his image in deep fake-focused cryptocurrency scam ads. The case was initially dismissed but was allowed to proceed by a US judge in June.
Meta’s Responsibility
The regulatory body claims that “since at least January 2018, Meta has been aware that a significant portion of cryptocurrency ads on the Facebook Platform used misleading or deceptive promotional practices.” Despite advertisers being required to comply with Meta’s Advertising Policies, such ads continued, and Meta is believed to have technology to place warnings on suspicious ads.
Meta states it has invested in “products and support systems” to keep fraudsters off the platform and has deleted fake accounts. In the last quarter of 2023, Facebook intervened with 691 million fake accounts, down from 827 million in the previous quarter and 2.2 billion fake profiles in 2019.
