Meta disputes Australian watchdog’s claims that 58% of Facebook crypto ads are scams

Meta is challenging the assertion by the Australian Competition and Consumer Commission (ACCC) that most cryptocurrency ads on Facebook are deceptive. In a lawsuit initiated in 2022, the ACCC claims that 58% of the crypto ads it examined on the platform were fraudulent.

Meta has strongly opposed these claims. The company contends that the information the ACCC considered in its report is outdated and does not accurately depict the status of its platform.

The ACCC’s allegations arise from an investigation in which it asserts to have uncovered 600 fraudulent ads on Facebook dating back to at least January 2018. As per the watchdog, Meta has been aware of these issues for an extended period. Despite implementing a policy to eradicate individual fraudulent ads and prohibit associated accounts, the ACCC implies that the company is still benefiting from similar advertisements.

Meta challenges ACCC’s fraud allegations

Meta has defended its actions in tackling fraudulent content on its platform. It believes that the data in the ACCC’s statement relies on old information and is from a “limited data set.” The company also insisted that other contact methods are still the top ways people are scammed.

The preliminary analysis referred to is an allegation in the ACCC’s claim and relates to a historic internal study from 2018 of a small sample of ads. Our company defending the ACCC’s claim and will respond to the allegation in due course. – Meta spokesperson

Meta also pointed out that other types of fraud are more common than those related to ads, and the data from the ACCC may not accurately represent the situation on the platform.

According to Meta, they have used manual reviews and automated technology, opted into the Australian Online Scams Code (AOSC), and updated guidelines to ensure advertisers post legitimate content.

Celebrities and victims take action against Meta

Despite Meta’s efforts to combat fraudulent ads on its platform, the company is still facing battles related to fraudulent ads.

In June 2022, Australian mining tycoon Andrew Forrest sued Facebook in California, alleging that it enables the creation of scam ads through its advertising system.

Divya Das and Kim Bildsøe Lassen, hosts of popular Danish television shows, reported Meta to the police in April after finding out their images and words had been used in thousands of Facebook ads without their knowledge. 

Four scam victims in Japan also launched legal action in April after being duped by online investment ads that used images of celebrities to attract unwitting victims.

According to Scamwatch reports, more than $13m of reported losses have come as a result of investment scams promoted on social media, compared to $134m in reported losses from scams overall.