The Australian Competition and Consumer Commission (ACCC) has stated that most cryptocurrency-related advertisements on Facebook by Meta are scams. In a new court filing, the ACCC has highlighted issues around misleading advertising practices and the steps being taken to combat these violations.
ACCC's Findings
According to the ACCC's filing with the Federal Court of Australia, Meta has been aware since 2018 that a significant portion of cryptocurrency-related advertisements on Facebook were 'misleading' or leveraged 'deceptive promotional practices.' The regulator found that over 58% of the crypto ads reviewed were either scams or violated Meta's Advertising Policies. So far, the ACCC has identified 600 ads promoting celebrity scams.
Scam Schemes and Their Victims
These adverts typically use images of key figures and celebrities in Australia to mislead investors before defrauding them via crypto investment scams. The filing highlights several names, such as actors Chris Hemsworth and Mel Gibson, alongside political figures like Mike Baird. In February 2024, cybersecurity firm Cybertrace issued an alert about scammers using deep fake videos of Australian tycoon Andrew Forrest to promote a fake crypto trading app.
Countermeasures and Future Steps
The ACCC added that Meta has the ability to issue warnings on ads to inform users about potentially fraudulent nature of certain advertisements but has not done so. Instead, Meta takes down individual ads upon receiving a complaint but continues to 'earn revenue' from similar ads. In 2022, the regulatory agency took Meta to court for 'deceptive conduct' by allowing scam celebrity-themed crypto ads. Further investigations will be conducted to find other instances of such scams.
Australia is facing a surge in crypto scams, compelling authorities to take comprehensive measures. Joint efforts from regulatory bodies, law enforcement, and banks aim to protect users and reduce the risk of similar incidents in the future.
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