Facebook has not been efficient in preventing crypto scam ads, according to the Australian regulator.
Meta, the parent company of Facebook, is facing a lawsuit in Australia, where a regulator says the social network has not done enough to prevent crypto scam ads.
The Australian Competition and Consumer Commission (ACCC) is suing 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 featuring celebrities, politicians, and TV hosts promoting various fraudulent schemes to make money from cryptocurrencies.
Crypto scams
The people who fell for these crypto scams were also under โhigh pressure tacticsโ, which included repetitive phone calls forcing them to deposit their money. According to the ACC, one person allegedly lost nearly half a million dollars.
โWe 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 ads. endorse cryptocurrency scam ads on their pages or warn users,โ 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 โโdeliberately allowing these ads on the social network and that he will work with the ACCC and defend the process.
โWe don't want ads that seek to scam people out of money or trick people on Facebook; they violate our policies and are not good for our community. We use technology to detect and block fraudulent ads and work to stay ahead of fraudsters who try to bypass our detection systems," Facebook said.
