- An Australian regulator has said that it believes over half of Facebook crypto ads are scams
- The regulator said that it investigated over 600 ads on the social media platform
- It added that most of the ads reviewed violated the platform’s “advertising policy.”
The Australian Competition and Consumer Commission (ACCC) claims that more than half of Facebook crypto ads are scams and some even violate the platform’s advertising policy. The ACCC said that most of the ads focus on offering investment opportunities and use images of celebrities and politicians to increase their credibility. The regulator hasn’t connected the scam ads to a particular individual, a sign it’s trying to draw attention to the ads to reduce the number of potential victims.
Does Facebook Know?
In a filing to the Federal Court of Australia, the ACCC said that Facebook has been showing the ads “since at least September 2017” and even labeled them “Celeb-Bait.” The regulator further noted that “since at least January 2018,” Facebook’s parent company Meta “has been aware that” crypto ads on the social media platform “have used misleading or deceptive promotional practices.”
The ACCC argued that Meta has the capacity to at least put a warning on scam ads to give Facebook users a heads-up when interacting with ad links. Although the ACCC acknowledges that the social media platform occasionally deletes scam ads and bans accounts, it noted that Facebook continues to earn revenue on the ads.
No Surprise to Prior Victims
Entities like Dutch Billionaire John de Mol have in the past sued Facebook for failing to stop scammers from using his image on a fake Bitcoin ad. Other popular figures like Australia’s Andrew Forrest have also sued Meta for failing to stop the use of deep fakes to promote crypto scams.
With the ACCC mounting pressure on Facebook for seemingly aiding scammers, it’s to be seen whether the court will find Facebook liable for allowing scam ads on the platform.
