SYDNEY - Meta says it has taken down about 8,000 “celeb bait” scam ads from Facebook and Instagram as part of a new effort with Australian banks to curb the practice.
The scams use images of famous people, often generated by artificial intelligence, to trick consumers into giving money to non-existent investment schemes.
The US social media giant said it took down the scam ads after receiving 102 reports since April from the Australian Financial Crimes Exchange, an intelligence-sharing body run by the country’s main banks.
Such scams are a global problem, but Meta is under heightened pressure to tackle the issue in Australia, where the government of Prime Minister Anthony Albanese is planning to introduce an anti-scam law by the end of the year.
The bill proposes fines of A$50 million (US$34 million) for social media, financial and telecommunications companies that fail to meet their obligations to crack down on the practice.
Scam reportsin Australia jumped by nearly one-fifth in 2023, with losses totalling A$2.7 billion, according to the Australian Competition and Consumer Commission.
The commission accused Meta in a 2022 lawsuit of failing to stop the dissemination of cryptocurrency ads that used images of celebrities like Mel Gibson, Russell Crowe and Nicole Kidman. It estimated that 58% of cryptocurrency advertisements on Facebook were possible scams.
Meta is fighting the lawsuit, which is yet to go to hearings.
The company is also defending a separate civil lawsuit in California brought by the Australian mining billionaire Andrew Forrest who accuses Meta of enabling the publication of thousands of bogus cryptocurrency advertisements on Facebook displaying his face.
Forrest says Australians continue to lose money to the scams that he began warning Meta about in 2019.
David Agranovich, Meta’s director of threat disruption, told a media briefing that the effort with Australian banks was still in its early stages.
“What we find promising is that a small amount of high-value signals can help us identify much wider fraud and scam activity,” he said, referring to indications within ads about potentially inauthentic content.
Asked about Meta’s view on Australia’s proposed anti-scam code, Agranovich said the company was still working through the draft legislation. “I expect we’ll have more to share specifically on that later,” he added.
Rhonda Luo, head of strategy and engagement at the Australian Financial Crimes Exchange said industry initiatives “are really important to get ahead of the curve on scams, rather than wait for regulation to come in and have effect”.
The scams use images of famous people, often generated by artificial intelligence, to trick consumers into giving money to non-existent investment schemes.
The US social media giant said it took down the scam ads after receiving 102 reports since April from the Australian Financial Crimes Exchange, an intelligence-sharing body run by the country’s main banks.
Such scams are a global problem, but Meta is under heightened pressure to tackle the issue in Australia, where the government of Prime Minister Anthony Albanese is planning to introduce an anti-scam law by the end of the year.
The bill proposes fines of A$50 million (US$34 million) for social media, financial and telecommunications companies that fail to meet their obligations to crack down on the practice.
Scam reportsin Australia jumped by nearly one-fifth in 2023, with losses totalling A$2.7 billion, according to the Australian Competition and Consumer Commission.
The commission accused Meta in a 2022 lawsuit of failing to stop the dissemination of cryptocurrency ads that used images of celebrities like Mel Gibson, Russell Crowe and Nicole Kidman. It estimated that 58% of cryptocurrency advertisements on Facebook were possible scams.
Meta is fighting the lawsuit, which is yet to go to hearings.
The company is also defending a separate civil lawsuit in California brought by the Australian mining billionaire Andrew Forrest who accuses Meta of enabling the publication of thousands of bogus cryptocurrency advertisements on Facebook displaying his face.
Forrest says Australians continue to lose money to the scams that he began warning Meta about in 2019.
David Agranovich, Meta’s director of threat disruption, told a media briefing that the effort with Australian banks was still in its early stages.
“What we find promising is that a small amount of high-value signals can help us identify much wider fraud and scam activity,” he said, referring to indications within ads about potentially inauthentic content.
Asked about Meta’s view on Australia’s proposed anti-scam code, Agranovich said the company was still working through the draft legislation. “I expect we’ll have more to share specifically on that later,” he added.
Rhonda Luo, head of strategy and engagement at the Australian Financial Crimes Exchange said industry initiatives “are really important to get ahead of the curve on scams, rather than wait for regulation to come in and have effect”.
