Meta has removed approximately 8,000 fraudulent 'celeb bait' ads from Facebook and Instagram as part of a collaborative initiative with Australian banks aimed at curbing this deceptive practice. These scams typically employ images of well-known individuals, often generated through artificial intelligence, to deceive consumers into investing in non-existent schemes. The social media giant acted on these ads after receiving 102 reports since April from the Australian Financial Crimes Exchange, an intelligence-sharing organization managed by the country's leading banks.
This issue is not confined to Australia; however, Meta faces increased scrutiny in the country as Prime Minister Anthony Albanese's government plans to introduce anti-scam legislation by year's end. The proposed bill includes fines of up to A$50 million ($34 million) for social media, financial, and telecommunications companies that fail to comply with efforts to combat scams. Public consultation on this legislation concludes on October 4.
According to the Australian Competition and Consumer Commission, scam reports surged by nearly 20% in 2023, resulting in losses of A$2.7 billion. In a 2022 lawsuit, the commission accused Meta of not preventing the spread of cryptocurrency ads featuring celebrities like Mel Gibson, Russell Crowe, and Nicole Kidman. It estimated that 58% of cryptocurrency ads on Facebook were potentially fraudulent. Meta is currently contesting this lawsuit, which has yet to reach hearings.
Additionally, Meta is defending a separate civil lawsuit in California brought by Australian mining magnate Andrew Forrest, who claims Meta facilitated the publication of thousands of fake cryptocurrency ads using his image on Facebook. Forrest asserts that Australians continue to fall victim to these scams, despite his warnings to Meta dating back to 2019.
David Agranovich, Meta's director of threat disruption, noted during a media briefing that the collaboration with Australian banks is still in its nascent stages. He expressed optimism that a few high-value indicators could help identify broader fraud and scam activities within ads. Regarding Australia's proposed anti-scam code, Agranovich stated that Meta is still reviewing the draft legislation and anticipates providing more specific insights in the future.
Rhonda Luo, head of strategy and engagement at the Australian Financial Crimes Exchange, emphasized the importance of industry initiatives in proactively addressing scams rather than waiting for regulatory measures to take effect.
