Meta has announced significant progress in its collaboration with Australian banks to eliminate fraudulent "celeb bait" advertisements from its platforms. The initiative has led to the removal of approximately 8,000 scam ads from Facebook and Instagram, targeting consumers with deceptive investment schemes that exploit the likenesses of famous personalities.
The so-called "celeb bait" scams utilize images of well-known figures, often created through artificial intelligence, to mislead consumers into investing in non-existent schemes. These scams have become a global issue, but Australia is facing increased scrutiny as the government prepares to introduce an anti-scam law by the end of the year.
The proposed legislation includes hefty fines of A$50 million (approximately $34 million) for social media, financial, and telecommunications companies that fail to adequately address these scams. A public consultation on the bill is set to close on October 4, 2023.
According to the Australian Competition and Consumer Commission (ACCC), scam reports have surged by nearly 20% in 2023, resulting in total losses of A$2.7 billion. The ACCC has previously accused Meta of not doing enough to prevent the spread of fraudulent cryptocurrency advertisements featuring celebrities like Mel Gibson and Nicole Kidman. The commission estimates that around 58% of cryptocurrency ads on Facebook could be scams.
Meta is currently contesting a lawsuit filed by the ACCC, which has yet to go to hearings. Additionally, the company is facing a separate civil lawsuit in California from Australian mining billionaire Andrew Forrest. Forrest claims that Meta has allowed the publication of numerous fake cryptocurrency ads featuring his image, leading to significant financial losses for Australians.
David Agranovich, Meta's director of threat disruption, emphasized that the partnership with Australian banks is still in its early stages. He noted that even a small number of high-value signals can help identify broader fraudulent activities. Agranovich expressed optimism about the initiative, stating, "What we find promising is that a small amount of high-value signals can help us identify much wider fraud and scam activity."
When asked about Meta's stance on the proposed anti-scam code, Agranovich mentioned that the company is still reviewing the draft legislation and expects to provide more information soon. Rhonda Luo, head of strategy and engagement at the Australian Financial Crimes Exchange, highlighted the importance of industry initiatives in combating scams proactively, rather than waiting for regulations to take effect.
As the collaboration between Meta and Australian banks progresses, the focus remains on protecting consumers from deceptive practices and ensuring a safer online environment.
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