Facebook’s parent company, Meta, has rejected recent claims suggesting that over half of crypto ads on its platform are scams. The Australian Competition and Consumer Commission (ACCC) had asserted in a federal court filing that 58% of the crypto ads reviewed were fraudulent. Meta, however, argues that this data is outdated and does not accurately reflect current practices.
Meta’s Rebuttal
In response to the ACCC's allegations, a Meta spokesperson criticized the data cited by the ACCC as relying on an outdated internal study from 2018. Meta contends that the ACCC’s findings are based on a limited dataset and argue that the situation has significantly improved since then. The company claims that it has implemented numerous measures to combat scams, including enhanced manual reviews and advanced automated technologies.
“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,” the spokesperson stated. Meta emphasizes its commitment to fighting scams and protecting its users by continuously updating its policies and using new machine learning techniques.
ACCC’s Investigation and Claims
According to the ACCC, it identified 600 ads during its investigation and alleged that Meta had been aware of misleading promotional practices since at least January 2018. The ACCC's filing suggests that while Meta does take down individual ads and ban associated accounts, it continues to benefit financially from similar ads.
The ACCC's claims reflect ongoing concerns about the prevalence of fraudulent activity on social media platforms, which are used by scammers to exploit users.
Meta’s Anti-Scam Measures
Meta asserts that it has taken substantial steps to address scam ads on its platform. The company reports having removed 631 million fake accounts and 436 million pieces of spam content in the first quarter of 2024. Importantly, Meta claims that 99.4% of fake accounts and 98.2% of spam content were identified and acted upon before being reported by users.
Additionally, Meta has opted into the Australian Online Scams Code (AOSC) and updated its guidelines to prevent misleading content. Despite these efforts, Meta continues to face scrutiny and legal action over its handling of scam-related issues.
Legal Actions by Celebrities and Victims
The issue of scam ads on Meta's platforms has also led to legal actions from various high-profile individuals. Australian billionaire Andrew Forrest filed a civil suit against Meta in June 2022, alleging that Facebook’s advertising system facilitated the creation of scam ads. Similarly, Danish television hosts Divya Das and Kim Bildsøe Lassen reported Meta to the police after discovering their images were used in fraudulent ads without their consent. Additionally, scam victims in Japan have also taken legal action after being deceived by ads featuring celebrities.
Conclusion
The debate over the prevalence of scam ads on Meta's platforms highlights the ongoing challenges faced by social media companies in regulating content and protecting users. As Meta continues to enhance its anti-scam measures, the effectiveness of these strategies and the company’s response to legal challenges will remain critical areas of focus.
August 2024, Cryptoniteuae