Originally published on: August 15, 2024
According to recent findings from Australia’s competition watchdog, a shocking 58% of crypto ads on Facebook are either scams or are in violation of Meta’s policies. This revelation has sparked concerns about the prevalence of fraudulent cryptocurrency schemes targeting unsuspecting users on the social media platform.
In a recent court filing, the Australian Competition and Consumer Commission (ACCC) accused Meta, Facebook’s parent company, of allowing deceptive crypto ads to proliferate on its platform. The ACCC alleges that these ads, which often feature images of prominent personalities like Dick Smith, James Packer, and Chris Hemsworth, promote fraudulent investment schemes that have led to substantial financial losses for Australian consumers.
While the exact amount lost to these scams is unknown, reports from the Australian Government’s Scamwatch indicate that investment scams remain a significant threat, with over $78 million in losses reported in 2024 alone.
The ACCC’s investigation identified 600 suspicious ads, with a focus on 234 that are believed to involve celebrity scams. Despite Meta’s efforts to remove fraudulent ads and ban associated accounts, the regulator argues that the company has been aware of deceptive practices in crypto advertising since at least 2018.
Critics have called on Meta to take more aggressive action to combat fraudulent ads, including implementing warnings for users and cracking down on repeat offenders. While Meta claims to invest in safety measures to keep scammers at bay, questions remain about the effectiveness of these efforts in curbing fraudulent activities on the platform.
As the battle against crypto scams on social media intensifies, the ACCC’s allegations underscore the need for vigilance when engaging with online advertisements. With the rise of celebrity-endorsed crypto schemes and the prevalence of deceptive practices, users are urged to exercise caution and conduct thorough research before investing in any cryptocurrency opportunities.
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