Originally published on: August 16, 2024
Meta, the parent company of Facebook, has hit back against allegations suggesting that more than half of crypto ads on the platform are scams. Disputing the accuracy of the data presented by the Australian Competition and Consumer Commission (ACCC), Meta contends that the information is outdated and does not reflect the current state of affairs.
Outdated Data Challenged by Meta
In response to ACCC’s assertion in a recent federal court filing that 58% of reviewed crypto ads on Facebook are fraudulent, Meta clarified that the data in question stems from a limited and antiquated dataset from 2018. The company highlighted that alternative means, rather than crypto ads, remain the predominant method by which individuals fall victim to scams.
Meta’s spokesperson rebuffed the claim, stating, “The preliminary analysis referred is an allegation in the ACCC’s claim and relates to a historic internal study from 2018 of a small sample of ads. Meta is defending the ACCC’s claim and will respond to the allegation in due course.” This challenges the notion that the provided data is a precise reflection of the current landscape on the platform.
Actions Taken to Combat Scam Advertisements
While acknowledging historical awareness of deceptive practices in crypto ads on Facebook dating back to at least January 2018, Meta asserts that it has implemented measures to address the issue. The company emphasized its utilization of manual reviews, automated technologies, participation in the Australian Online Scams Code (AOSC), and continuous updates to guidelines to promote the dissemination of legitimate advertising content.
Meta’s proactive stance against fraudulent activities is demonstrated through the removal of 631 million fake accounts and 436 million spam content pieces from Facebook during the initial quarter of 2024. An impressive 99.4% of fake accounts and 98.2% of spam content were addressed proactively before user reports were lodged.
Legal Battles and Continued Vigilance
Despite Meta’s efforts to combat scams, several high-profile individuals have pursued legal action against the platform for alleged inaction in curbing crypto scams misusing their identities. Notably, billionaire Andrew Forrest initiated legal proceedings in California against Meta, contending that the platform’s advertising interface facilitated scammers.
Moreover, hosts of popular Danish TV shows, Divya Das and Kim Bildsøe Lassen, reported Meta to the authorities after discovering the unauthorized utilization of their images in thousands of Facebook ads. Additionally, scam victims in Japan have taken legal recourse to seek redress for falling prey to online investment schemes leveraging celebrities’ images for deceitful advertising.
In a landscape where online scams pose a persistent threat, Meta remains committed to combatting deceptive practices and upholding the integrity of its platform through a multifaceted approach encompassing technological advancements and stringent enforcement measures.
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