Australian Regulator Accuses Facebook of Fraudulent Crypto Ads

user avatar

by Giorgi Kostiuk

2 years ago

Made with AI


  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.

Tier I

Sector: #18291

Sealed Hiding Place Room

Resource Cache

Resource Cache

Tier I

Requires 25% Tier Progress to Claim
Meme Cache

Meme Cache

Tier I

Requires 50% Tier Progress to Claim
Equipment Cache

Equipment Cache

Tier I

Requires 75% Tier Progress to Claim

After collecting, hiding places will be stored in your inventory and can be opened with Keys.

Other news

Visa, BILL, and Billtrust Pilot AI Agents for Invoice Payments

Visa, BILL, and Billtrust have launched a pilot program to use AI agents for automating approved invoice payments through supplier portals.

user avatarZainab Kamara

Visa Introduces Stablecoin-Enabled Prefunding with Inyo Global

Visa has launched its stablecoin-enabled Visa Direct prefunding service in collaboration with Inyo Global, enhancing international money transfer efficiency.

user avatarSon Min-ho

Ripple Prime Introduces Perpetual Swaps for Institutional Clients

Ripple Prime introduces perpetual swaps for institutional clients, allowing them to trade derivatives referencing over 100 traditional markets.

user avatarAyman Ben Youssef

Ripple Highlights Key Trends in Institutional Custody from BCG Report

Ripple discusses key trends in institutional custody for digital assets based on a BCG report, highlighting the importance of governance, interoperability, and security.

user avatarTando Nkube

Solana Enhances Developer Experience with Web3js v31 Release

Solana announces the release of Web3js v31 on October 16, enhancing interoperability with development tools for easier application building.

user avatarKofi Adjeman

Study Proposes Optimizing Validator Leader Schedules for Solana

A study suggests optimizing validator leader schedules for quicker handovers while highlighting potential security tradeoffs.

user avatarNguyen Van Long

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.