Facebook has not been efficient in preventing ads from crypto scams, according to Australian regulator.
Meta, Facebook’s parent company, is facing a lawsuit in Australia, where a regulator says the social network hasn’t done enough to prevent crypto-scam ads.
The Australian Competition and Consumer Commission (ACCC) sues the company for violating laws that prohibit false or misleading conduct, as well as laws that regulate investments.
The report reveals that there were several advertisements showing celebrities, politicians, and TV hosts promoting various fraudulent schemes to make money from cryptocurrencies.
The people who fell for these crypto scams were also under “high pressure tactics”, which included repetitive phone calls forcing them to deposit their money. According to the ACC, one person allegedly lost nearly half a million dollars.
“We allege that Meta’s technology allowed these ads to be targeted to users most likely to interact with the ads, that Meta assured its users that it would detect and prevent spam and promote safety on Facebook, but was unable to prevent the posting other similar celebrity endorsement cryptocurrency scam ads on their pages or warning users,” ACCC Chairman Rod Sims was quoted as saying by The Register.
Faced with this situation, Meta told The Register that he rejects the idea of deliberately allowing these ads on the social network and that he will work with the ACCC and defend the proceedings.
“We don’t want ads that seek to scam people out of money or trick people on Facebook – they violate our policies and aren’t good for our community. We use technology to detect and block fraudulent ads and work to stay ahead of scammers trying to circumvent our detection systems,” Facebook said.