Australia’s competition watchdog has revealed that more than half of cryptocurrency ads on Facebook are either scams or violate Meta’s advertising policies. The Australian Competition and Consumer Commission (ACCC) disclosed this in a recent court filing, highlighting the results of its preliminary investigation into crypto-related advertisements on the platform.
ACCC’s Battle Against Facebook’s Alleged Role in Crypto Scams
In 2022, the ACCC took legal action against Meta, Facebook’s parent company, accusing it of “aiding and abetting” fraudulent crypto ads that exploited the images of high-profile Australians. The ads often featured well-known figures such as entrepreneur Dick Smith, billionaire James Packer, and Hollywood stars like Chris Hemsworth and Nicole Kidman, to promote fake crypto investments. While a hearing date has yet to be set, the ACCC continues to build its case, with its latest findings further strengthening its claims.
Alarming Findings from Preliminary Research
The ACCC’s analysis found that approximately 58% of the reviewed crypto ads on Facebook breached Meta’s policies or were potentially involved in scams. The watchdog initially identified 600 suspicious ads, narrowing its focus to 234 for further investigation. The regulator believes that more instances of fraudulent ads could surface as the discovery process progresses.
Investment scams remain a significant concern in Australia, with Scamwatch reporting that over 3,400 investment scam cases have been recorded in 2024, amounting to losses exceeding $78 million. The ACCC’s findings underscore the growing threat of these scams, which have been increasingly targeting unsuspecting Australians through social media platforms like Facebook.
Also Read: FBI Warns of Scammers Posing as Crypto Exchange Representatives
Meta’s Responsibility Under Scrutiny
The ACCC argues that Meta has been aware since at least January 2018 that a significant portion of cryptocurrency ads on its platform used deceptive practices. Despite this knowledge, Meta has continued to display these ads, removing them only after receiving complaints. The regulator asserts that Meta has the technical capability to develop tools to warn users about suspicious ads but has not taken sufficient action to prevent the recurrence of similar scams.
Ongoing Legal Battles
The case against Meta is not the only legal challenge the tech giant faces in Australia. In December 2023, billionaire Andrew Forrest sued Meta for using deepfake videos of him in scam ads on Facebook. Although the case was initially dismissed, a U.S. judge allowed it to proceed in June 2024, adding another layer of complexity to Meta’s legal troubles.
Meta, for its part, claims that it invests heavily in products and systems designed to keep scammers off its platform, including deleting fake accounts. However, the ACCC’s ongoing investigation suggests that these measures may not be sufficient to protect users from the growing threat of crypto scams on Facebook.
