Over half of crypto ads on Facebook are either scams or violate Meta’s policies, according to Australia’s competition watchdog — citing preliminary research.
In 2022, the Australian Competition and Consumer Commission (ACCC) took Facebook parent company Meta to court over allegations the company had “aided and abetted” celebrity crypto scam ads on Facebook. A hearing date has yet to be set.
In the latest filing to federal court, the ACCC claims that during its preliminary analysis of crypto advertisements on the platform, upward of 58% of those reviewed violated “Meta’s Advertising Policies or, potentially, involved scams.”
The ads, which promote crypto investment scams, use the image of high-profile Australians, such as entrepreneur Dick Smith, billionaire former casino executive James Packer, Hollywood actors Chris Hemsworth, Mel Gibson, Nicole Kidman, Russell Crowe, and former politician Mike Baird.
No specific figure is mentioned for possible losses associated with these scams, but the Australian Government website Scamwatch shows that investment scams are still the most prominent way Aussies are losing money.
Investment scams taking more cash from Aussies than any other scam in 2024. Source: Scamwatch
So far, in 2024, there have been 3,456 reports of investment scams, totaling over $78 million in losses.
The ACCC says it identified 600 ads during its investigation. However, it is now focused on just 234 and claims it could find other instances of celebrity scams after the discovery process in the case.
In December of 2023, Billionaire Australian mining tycoon Andrew Forrest sued Meta over Facebook ads that used deep fakes of his image to promote scam crypto schemes. It was originally thrown out, but a United States judge gave the case a green light to proceed in June.
At the same time, the regulator argues that since “at least January 2018, Meta has been aware that a significant proportion of cryptocurrency advertisements on the Facebook Platform have used misleading or deceptive promotional practices.”
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