In a startling revelation, Australia’s competition watchdog has found that over 58% of cryptocurrency advertisements on Facebook either breach Meta’s advertising policies or are involved in scams, according to preliminary research conducted by the Australian Competition and Consumer Commission (ACCC).
This latest finding is part of an ongoing investigation into the prevalence of fraudulent crypto ads on the platform. The ACCC’s scrutiny follows legal action taken against Meta in 2022, where the commission accused the company of “aiding and abetting” deceptive celebrity-endorsed crypto scam ads. A court date for this case has yet to be set, adding to the mounting legal challenges facing Meta.
The ACCC’s federal court filing highlights that its initial review of crypto ads on Facebook has uncovered that approximately 58% of the ads analyzed either violated Meta’s Advertising Policies or were potentially fraudulent. These ads often exploit the images of prominent Australians, including entrepreneur Dick Smith, billionaire former casino executive James Packer, and Hollywood stars like Chris Hemsworth, Mel Gibson, Nicole Kidman, and Russell Crowe, as well as former politician Mike Baird.
Although the ACCC has not provided specific figures regarding the financial impact of these scams, Scamwatch, the Australian Government’s fraud prevention service, indicates that investment scams continue to be the most significant source of financial loss for Australians. In 2024 alone, there have been 3,456 reports of investment scams, resulting in losses exceeding $78 million.
The ACCC’s investigation revealed a total of 600 ads under scrutiny. The commission has since narrowed its focus to 234 ads and expects to uncover additional instances of fraudulent activity involving celebrity endorsements as the case unfolds. This ongoing scrutiny aims to hold Meta accountable and address the issues within its advertising ecosystem.
In June 2022, billionaire Australian mining tycoon Andrew Forrest initiated legal action against Meta, accusing the company of using deepfake images of his likeness in fraudulent crypto advertisements. Although the case was initially dismissed, a U.S. judge has recently allowed it to proceed, signaling continued legal battles for Meta.
The ACCC asserts that Meta has been aware of misleading and deceptive cryptocurrency ads on its platform since at least January 2018. The regulator argues that while Meta has the technical capability—or could develop technology—to issue warnings on suspicious ads, the company continues to display and profit from similar ads featuring public figures, despite removing individual ads and occasionally banning associated accounts after receiving complaints.
Meta has countered these allegations by emphasizing its efforts to combat scams. The company asserts that it invests significantly in developing products and support systems designed to detect and prevent fraudulent activity. According to Statista, Facebook took action against 691 million fake accounts in the fourth quarter of 2023, a reduction from 827 million in the previous quarter and significantly lower than the peak of 2.2 billion fake profiles in 2019.
As the ACCC continues its investigation, Meta has been contacted for further comment on the watchdog’s claims and its ongoing efforts to address the issue of fraudulent ads on its platform.
Source: Cointelegraph
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