Australia’s competition regulator, the Australian Competition and Consumer Commission (ACCC), has filed a lawsuit against Meta, alleging that the majority of cryptocurrency advertisements on Facebook are scams. According to the ACCC, Meta has been aware since 2018 that a significant portion of these ads were misleading or deceptive. Their preliminary analysis revealed that over 58% of the crypto ads reviewed were either scams or in violation of Meta’s Advertising Policies, leading to the identification of around 600 ads promoting celebrity scams.
The scam advertisements often misappropriate the images of prominent Australian figures, including celebrities and politicians, to mislead potential investors. The filing mentioned names like Chris Hemsworth and Mel Gibson, along with political figures such as Mike Baird, whose likenesses have been exploited in these fraudulent ads. A notable example involved the use of deep fake videos of entrepreneur Andrew Forrest to promote a fake crypto trading app, showcasing the sophistication of these scams.
The ACCC’s filing also criticizes Meta for not adequately warning users about potentially deceptive ads. Instead of providing alerts or warnings, Meta has taken down individual ads only when complaints arise, all while continuing to generate revenue from similar misleading advertisements. The regulator initially took legal action against Meta in 2022, claiming the company engaged in deceptive conduct by allowing these scam ads to circulate on its platform.
Australia has seen a significant rise in crypto-related scams, with reports indicating over 143,000 cases resulting in losses exceeding $134 million. The Australian Financial Crimes Exchange noted that more than $3 billion was lost to crypto scammers in the previous year. In response to the surge in scams, Australian authorities have implemented various measures, including a collaborative operation with blockchain forensic firms to recover stolen crypto funds and banks restricting payments to crypto exchanges.
Reference:
