By Byron Kaye
Are you tired of seeing scam ads on your social media feed? Well, Meta has just taken down 8,000 “celeb bait” scam ads from Facebook and Instagram in collaboration with Australian banks. These deceptive ads use images of famous personalities, often created by artificial intelligence, to lure unsuspecting consumers into investing in fake schemes.
The crackdown on these scams comes after Meta received 102 reports from the Australian Financial Crimes Exchange, an intelligence-sharing body operated by the country’s major banks. With the Australian government planning to introduce an anti-scam law by the end of the year, Meta is under increased pressure to address this issue in the region.
The proposed legislation includes hefty fines of A$50 million for companies, including social media platforms like Meta, that fail to combat fraudulent activities effectively. Reports of scams in Australia surged by nearly 20% in 2023, resulting in losses of A$2.7 billion, according to the Australian Competition and Consumer Commission.
In a 2022 lawsuit, Meta was accused by the commission of not doing enough to prevent the dissemination of cryptocurrency ads featuring celebrities such as Mel Gibson, Russell Crowe, and Nicole Kidman. The lawsuit alleged that a significant portion of cryptocurrency ads on Facebook could potentially be scams.
As Meta fights legal battles in Australia, including a lawsuit by Australian mining billionaire Andrew Forrest, the company’s director of threat disruption, David Agranovich, emphasized the importance of collaborative efforts with Australian banks to combat fraud effectively.
With ongoing discussions about Australia’s proposed anti-scam legislation, Meta is navigating its stance on the issue. Rhonda Luo, head of strategy and engagement at the Australian Financial Crimes Exchange, highlighted the significance of industry initiatives in proactively addressing scams before regulatory measures come into effect.
Stay tuned to see how Meta continues to combat fraudulent activities on its platforms and works towards protecting users from falling victim to scams. Remember, always stay vigilant and cautious when encountering investment opportunities on social media.
($1 = 1.4535 Australian dollars)