Meta Platforms Inc. has removed approximately 8,000 fraudulent advertisements from Facebook and Instagram, targeting “celebrity bait” scams.
These deceptive ads exploit images of well-known personalities, frequently generated by AI, to lure unsuspecting consumers into fictitious investment schemes.
This initiative is in line with Australian banks’ target to tackle the rising tide of such scams. Since April, the Australian Financial Crimes Exchange has reported 102 instances of these scams, prompting Meta’s swift action.
The Australian government has placed increased watch on the social media giant, with plans to introduce anti-scam legislation by the end of the year. This proposed law could impose substantial fines of A$50 million (approximately $34 million) on social media, financial, and telecommunications firms that fail to adequately address these fraudulent practices. A public consultation on the legislation will conclude on October 4.
The Australian Competition and Consumer Commission revealed an increase in scam reports, with a nearly 20% rise in 2023 alone, resulting in losses of A$2.7 billion. In a previous lawsuit against Meta, the commission accused the company of inadequately preventing the spread of misleading cryptocurrency advertisements featuring images of celebrities like Mel Gibson, Russell Crowe, and Nicole Kidman. It estimated that a high portion—58%—of such ads on Facebook could be potential scams.
Meta is currently contesting this lawsuit, which has not yet proceeded to hearings. The company is also facing another civil lawsuit in California from Australian billionaire Andrew Forrest.
He alleges that Meta facilitated the distribution of numerous fraudulent cryptocurrency ads using his likeness, highlighting the ongoing issues that have been since he first alerted the platform to these scams in 2019.
David Agranovich, Meta’s director of threat disruption, acknowledged the early stages of their collaboration with Australian banks during a media briefing. He said even a small number of significant reports could lead to the identification of broader fraudulent activities.
Regarding the proposed anti-scam legislation, Agranovich stated that Meta is still reviewing the draft, promising further updates in due course. Rhonda Luo, the head of strategy and engagement at the Australian Financial Crimes Exchange, emphasised the importance of proactive industry measures to stay ahead of scams, rather than merely reacting to regulatory changes.
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