Australia’s competition authority, Facebook The company dropped a bombshell claim that 58 percent of cryptocurrency ads on Meta were scams or in violation of Meta’s advertising policies. The serious accusation came as a result of preliminary investigations by the country’s Competition and Consumer Commission (ACCC).
In 2022, the ACCC will investigate Facebook’s parent company Meta over the use of celebrity names crypto money sued Meta for allegedly “aiding and providing” fraudulent advertising. Although a hearing date has not yet been set, in its latest filing, the Commission alleged that 58 percent of the ads reviewed violated Meta’s Advertising Policies or were fraudulent. A Prize Pool Worth 21 Million TL Awaits You from BinanceTR! Participating and winning has never been easier.. You can sign up to BinanceTR from this link. Get your first crypto!
These types of ads are known to promote cryptocurrency investment scams using the reputations of famous Australian figures. Businessman Dick Smith, billionaire former casino manager James Packer, Hollywood stars Chris Hemsworth, Mel Gibson, Nicole Kidman, Russell Crowe and former politician Mike Baird are among those who have fallen victim to these scams.
The extent of fraud is at serious levels
While no specific figures have been given for potential losses from these scams, the Australian government’s Scamwatch site shows that investment scams are the most common way Australians lose money. As of 2024, there have been 3,456 complaints of investment scams, totaling over $78 million in losses.
The ACCC identified 600 ads during the investigation, but is currently focusing on just 234. It is noted that other celebrity scams may also come to light in the process. In December 2023, Australian billionaire miner Andrew Forrest, MetaHe had sued over crypto scam ads that used his image and involved deepfakes. Although the case was initially dismissed, a US judge in June allowed the case to proceed.
The regulator claims that “since at least January 2018, Meta has been aware that a significant portion of cryptocurrency ads on the Facebook Platform use misleading or deceptive promotional practices.” It notes that such ads continue despite advertisers being required to comply with Meta’s Ads Policies, and that Meta may have technology to place warnings on suspicious ads.
Meta says it invests in “products and support systems” to keep scammers off the platform and removes fake accounts in its security center. In the final quarter of 2023, Facebook intervened in 691 million fake accounts, down from 827 million in the previous quarter and 2.2 billion fake profiles in 2019.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
