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15/08/24
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ACCC Reports Over Half of Crypto Ads on Facebook Are Scams, Raising Alarm
A recent investigation revealed that over half of cryptocurrency advertisements on Facebook are either scams or breach Meta’s guidelines, according to findings from Australia’s competition watchdog. The Australian Competition and Consumer Commission (ACCC) has raised concerns regarding the prevalence of misleading ads highlighting that 58% of the analyzed cryptocurrency promotions on the platform failed to adhere to Meta’s advertising standards or appeared to involve fraudulent schemes.
The aggressive promotion of these scams features high-profile Australians, including entrepreneur Dick Smith, billionaire James Packer, and Hollywood stars such as Chris Hemsworth and Nicole Kidman. Although the ACCC did not quantify the potential losses stemming from these scams, data indicates that investment fraud is a leading concern among Australians. In 2024 alone, Scamwatch reported 3,456 instances of such scams, resulting in over $78 million in financial losses.
During its research, the ACCC identified 600 advertisements but is currently concentrating on 234, suggesting that further fraudulent celebrity scams may surface as the legal process develops. In a related case, mining magnate Andrew Forrest launched a lawsuit against Meta over the use of deep fake technology to misrepresent him in ads for unauthorized cryptocurrency schemes. While the initial case was dismissed, a U.S. judge later permitted it to move forward.
The ACCC contends that Meta has been aware of the misleading nature of many cryptocurrency ads on its platform since at least 2018. It emphasizes that advertisers are contractually bound to comply with advertising policies that prohibit deceptive practices. Moreover, the regulator highlights Meta’s potential to implement warning banners on suspicious ads to inform users of potential risks, suggesting that the company has the technical capability to address these issues more effectively.
Meta maintains that it invests significantly in security measures to combat scams, claiming to have deleted hundreds of millions of fake accounts in recent months. However, concerns remain whether the company is doing enough to prevent similar fraudulent advertisements from reappearing.
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