Author: Stephen Katte, CoinTelegraph; Translated by: Deng Tong, Golden Finance
More than half of crypto ads on Facebook are either scams or violate Meta’s policies, according to preliminary research by Australia’s competition regulator.
In 2022, the Australian Competition and Consumer Commission (ACCC) took Facebook parent company Meta to court, accusing the company of "aiding and abetting" celebrity crypto scam ads on Facebook. A hearing date has not yet been set.
In documents recently filed in the Federal Court, the ACCC claimed that in a preliminary analysis of crypto ads on the platform, more than 58% of the ads reviewed violated “Meta’s advertising policies or may involve scams.”
The ads promoted crypto investment scams and used images of well-known Australians such as entrepreneur Dick Smith, billionaire former casino executive James Packer, Hollywood actors Chris Hemsworth, Mel Gibson, Nicole Kidman, Russell Crowe and former politician Mike Baird.
While no specific figures were mentioned for the losses these scams may have caused, Australian government website Scamwatch shows investment scams remain the top way Australians lose money.
Investment scams have taken more cash from Australians than any other scam in 2024. Source: Scamwatch
So far in 2024, there have been 3,456 reports of investment scams, with losses totaling more than $78 million.
The ACCC said it found 600 ads during its investigation. However, it is now focusing on just 234 ads and claims it can find other celebrity scams following the course of the case.
In December 2023, billionaire Australian mining tycoon Andrew Forrest sued Meta, alleging that Facebook ads used deepfake images of him to promote scam crypto schemes. The case was initially dismissed, but a U.S. judge allowed it to go to trial in June.
At the same time, the regulator argued that “since at least January 2018, Meta had been aware that a significant portion of cryptocurrency ads on Facebook used misleading or deceptive promotional practices.”
"Advertisers are required to agree to certain contractual terms, including compliance with Meta's advertising policies. These policies prohibit the use of deceptive or misleading practices to promote the scheme's advertising," the ACCC said.
According to the Australian regulator, Meta does have the “technical capability, or may have developed the technology” to display warnings on suspicious ads, alerting users to be careful when interacting with them.
Although Meta allegedly removes individual ads after receiving complaints and sometimes bans the accounts involved, it continues to display and earn revenue from similar ads featuring the same celebrities or other public figures.
Meta claims in its security center that it invests in “products and support systems to stop scammers” and removes fake accounts.
In the fourth quarter of 2023, Facebook took action against 691 million fake accounts, down from 827 million in the previous quarter. Source: Statista
Statista data estimates that Facebook took action against 691 million fake accounts in the fourth quarter of 2023, down from 827 million fake accounts in the previous quarter and a high of 2.2 billion fake profiles in 2019.
