The ACCC disclosed that 58% of the ads breached Meta’s Advertising Policies or were likely linked to scams.
More than half of the cryptocurrency advertisements on Facebook are either scams or go against Meta’s advertising guidelines, according to Australia’s competition watchdog.
Research was done by the Australian Competition and Consumer Commission (ACCC) as part of its ongoing legal dispute with Facebook’s parent company, Meta.
The ACCC started investigating Facebook’s cryptocurrency ads in 2022 after filing a lawsuit against Meta, alleging that the tech giant was “aiding and abetting” the creation of fraudulent cryptocurrency ads that used Australian celebrities’ images.
Despite the lawsuit being in progress for over two years, a hearing date has not yet been set.
58% of Crypto Ads on Facebook Are Scams
The ACCC revealed in a recent filing to the federal court that, after an initial review of Facebook’s cryptocurrency ads, about 58% of the ads either violated Meta’s advertising policies or were probably connected to scams.
The likenesses of well-known Australians, such as businessman Dick Smith, former casino executive James Packer, and Hollywood stars like Chris Hemsworth, Mel Gibson, Nicole Kidman, Russell Crowe, and former politician Mike Baird, are frequently used in these fraudulent advertisements.
Data from the Australian Government website Scamwatch suggests that investment scams continue to pose a serious threat, even though the ACCC has not disclosed the total amount of money lost as a result of these schemes.
In 2024 alone, Australians have reported 3,456 cases of investment scams, with losses exceeding $78 million.
The ACCC found that about 600 advertisements might have violated Meta’s policies during its investigation; however, it is now concentrating on 234 ads.
The commission believes that further examples of deceptive crypto promotions could surface as the legal discovery process unfolds.
Andrew Forrest Sues Meta
Last year, Australian mining magnate Andrew Forrest filed a lawsuit against Meta, claiming that Facebook ads used deep fakes of his image to promote crypto scams.
While the case was initially dismissed, a U.S. judge recently allowed it to proceed.
The ACCC argues that Meta has been aware of the problem since at least January 2018 but has not taken sufficient action to curb the misleading practices.
Despite removing individual ads and occasionally banning associated accounts, Meta continues to display and profit from similar deceptive advertisements.
Meta, in its defense, asserts that it invests heavily in safety measures to combat scams, including removing fake accounts.
As previously reported, hackers gained access to roughly $266 million through 16 separate breaches in July, causing significant losses for the cryptocurrency industry.
The attack on the Indian cryptocurrency exchange WazirX on July 18 was one of the most prominent events; it was responsible for over $230 million, or 86.4%, of the month’s total losses.
The decentralized AI protocol Bittensor, the bridging protocol Li.Fi ($10 million), the algorithmic protocol Compound Finance ($24 million), and the liquidity provider Rho Markets ($8 million) were among the other notable victims of the July crypto hacks.
June had a smaller loss of $176 million, dispersed over about 20 incidents, compared to July’s $176 million, which shows a significant increase in the value of stolen assets in just one month.