• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M

Australian Regulator Accuses Facebook of Fraudulent Crypto Ads

user avatar

by Giorgi Kostiuk

2 years ago


  1. Meta’s Legal Battle Continues
  2. The Serious Scale of Fraud
  3. Meta’s Responsibility

  4. Australia’s competition authority claimed that 58% of crypto ads on Facebook are scams or violate Meta’s ad policies, causing a significant stir. This serious accusation emerged from preliminary investigations by the Australian Competition and Consumer Commission (ACCC).

    Meta’s Legal Battle Continues

    In 2022, the ACCC sued Meta, Facebook’s parent company, for allegedly aiding and hosting crypto scam ads using celebrities’ names. Although no trial date has been set, the Commission recently claimed that 58% of the reviewed ads violated Meta’s Ad Policies or were fraudulent. These ads are known to exploit the reputations of famous Australians to promote crypto investment scams. Victims include businessman Dick Smith, billionaire former casino executive James Packer, Hollywood stars Chris Hemsworth, Mel Gibson, Nicole Kidman, Russell Crowe, and former politician Mike Baird.

    The Serious Scale of Fraud

    While exact losses from these scams are not provided, Australia’s Scamwatch site shows investment scams are the most effective method for Australians to lose money. As of 2024, 3,456 complaints about investment scams have been recorded, with losses exceeding $78 million. The ACCC identified 600 ads during the investigation but is currently focusing on only 234. Other celebrity scams may also emerge during this process. In December 2023, Australian billionaire miner Andrew Forrest sued Meta for using his image in deep fake crypto scam ads. Although initially dismissed, a US judge allowed the case to proceed in June.

    Meta’s Responsibility

    The regulatory body claims that “since at least January 2018, Meta has been aware that a significant portion of crypto ads on the Facebook Platform used misleading or deceptive promotional practices.” Despite advertisers’ obligation to comply with Meta’s Ad Policies, such ads continued, and Meta might have technology to flag suspicious ads. Meta states that it invests in “products and support systems” to keep scammers off the platform and removes fake accounts. In the last quarter of 2023, Facebook intervened with 691 million fake accounts, down from 827 million in the previous quarter and 2.2 billion fake profiles in 2019.

    Australia’s ACCC claims 58% of Facebook crypto ads are scams or policy violations. Meta faces a lawsuit for allegedly aiding crypto scams using celebrities’ names. Investment scams have caused Australians to lose over $78 million as of 2024.

0

Rewards

chest
chest
chest
chest

More rewards

Discover enhanced rewards on our social media.

chest

Other news

XRP Australia 2026 Event to Foster Blockchain Innovation

chest

The XRP Australia 2026 event aims to bring builders together for a 24-hour sprint focused on developing real-world applications on the XRPL.

user avatarLi Weicheng

Analyst Highlights Importance of LTC/BTC Pair for Litecoin's Future

chest

Crypto analyst CryptoWzrd highlights the importance of the LTC/BTC pair for Litecoin's future, emphasizing the need for bullish sentiment and a strong daily candle to confirm a breakout.

user avatarAisha Farooq

Litecoin Shows Bullish Momentum as Price Approaches Key Resistance

chest

Litecoin closed the daily session positively, indicating short-term bullish momentum as it approaches a significant resistance level at 57.

user avatarTenzin Dorje

Bitcoin Faces Continued Downward Pressure Amid Market Instability

chest

Bitcoin has struggled to reclaim key resistance levels, hovering around the 69,000 price region amidst bearish market sentiment.

user avatarMohamed Farouk

CEO of Praetorian Group International Sentenced to 20 Years for Ponzi Scheme

chest

CEO of Praetorian Group International sentenced to 20 years for operating a large-scale Ponzi scheme that defrauded investors of over $627 million.

user avatarElias Mukuru

Bitcoin Whales Face Significant Unrealized Losses Amid Bear Market

chest

Bitcoin whales are facing significant unrealized losses due to the ongoing bear market, which may lead to further price declines.

user avatarBayarjavkhlan Ganbaatar

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.