Around the world, fraudsters are turning to social media platforms like Facebook and Instagram to reach billions of potential victims. As losses continue to pile up, regulators are voicing their concerns, with one going as far as suing a social media giant for not taking sufficient steps to tackle the rampant issue.
Just last month, Australia’s Competition and Consumer Commission (ACCC) instituted Federal Court proceedings against Facebook owner Meta Platforms for allegedly misleading users by publishing scam advertisements featuring local celebrities.
The ads promoted cryptocurrency investments and linked to fake media articles in which public figures endorsed the schemes. The watchdog said Meta Platforms “engaged in false, misleading or deceptive conduct.” The firm was allegedly aware of the fraudulent ads being placed on Facebook but did not take sufficient steps to have them removed.
In some instances, the ads remained online even after the public figures reported that their name and image were being featured in celebrity endorsement cryptocurrency scam ads.
Meta Platforms’ technology enables ads to be targeted at users most likely to engage with the ads, the ACCC said, adding that data suggest that social media is far more profitable to scammers than any other method. One individual lost more than A$650,000 (US$480,000), according to the media release.
In the UK, the Financial Conduct Authority (FCA) warned Meta Platforms and Twitter just last week that…
