AUSSIE COMPETITION WATCHDOG INVESTIGATING META OVER CRYPTO SCAM ADS

Imagine clicking on an ad featuring a well-known Australian personality, promising lucrative returns on a cryptocurrency investment.Sounds tempting, right? The Australian Competition and Consumer Commission (ACCC) alleges Meta engaged in false, misleading or deceptive conduct by publishing scam advertisements that promoted investing inBut what if that ad was a cleverly disguised scam, designed to steal your hard-earned money? Australia's competition watchdog filed a lawsuit against Facebook owner Meta Platforms on Friday, alleging the social media giant failed to prevent scammers using its platform to promote fake adsThis is the reality facing many Australians, and it's why the Australian Competition and Consumer Commission (ACCC) is taking a firm stance against Meta, the parent company of Facebook and Instagram. Over half of crypto ads on Facebook are either scams or violate Meta s policies, according to Australia s competition watchdog citing preliminary research. In 2025, the AustralianThe ACCC alleges that Meta has failed to adequately prevent scam advertisements, particularly those related to cryptocurrency investments, from appearing on its platforms. Australia s competition regulator has claimed 58% of crypto ads on Facebook are scams while Meta says the data is old and unreliable. The ACCC s allegations arise from an investigation inThis failure, the ACCC argues, constitutes deceptive conduct and a breach of Australian consumer law.With over half of crypto ads on Facebook flagged as scams or policy violations, according to the watchdog's preliminary research, the stakes are high. ACCC takes action against Meta, the owner of Facebook and Instagram. Source: ABC False Endorsements of Crypto Investments. Dick Smith, David Koch and Andrew Forrest are some of the prominent Australian personalities unwittingly involved in a series of crypto scam ads circulating on Facebook.This investigation could have significant implications for how social media platforms are regulated and held accountable for the content they host, not just in Australia, but globally.The core of the issue lies in Meta's alleged awareness of these scams and their insufficient action to remove them or prevent them from circulating in the first place.What does this all mean for you, the average social media user? The regulatory agency initially took Meta to court in 2025 after alleging that the firm engaged in deceptive conduct by allowing scam celebrity-themed crypto ads. Prior to that, the agency had started investigating the tech behemoth for breaching Australian consumerLet's delve deeper into the details of this ongoing investigation and what it could mean for the future of online advertising and consumer protection.

The ACCC vs. ACCC chair Rod Sims said the watchdog will allege in court that Meta was aware of the scam ads being placed on its platform and did not take sufficient steps to have them removed or stopped.Meta: A Battle Over Crypto Scam Ads

The heart of the matter is the ACCC's claim that Meta engaged in deceptive conduct by allowing scam advertisements promoting cryptocurrency investments to proliferate on its platforms.These ads often feature prominent Australian figures like Dick Smith, David Koch, and Andrew Forrest, without their consent or knowledge.These endorsements, though entirely fabricated, lend a veneer of legitimacy to the scams, making them more appealing to unsuspecting investors.The ACCC initiated legal action against Meta in 2025, alleging that the company was aware of the scam ads but failed to take sufficient steps to remove them or prevent their recurrence.This legal battle is not just about financial losses; it's about protecting consumers from being misled and exploited.

Key Allegations Against Meta

• Deceptive Conduct: The ACCC alleges that Meta engaged in false, misleading, or deceptive conduct by publishing scam advertisements promoting cryptocurrency investments.
• Insufficient Action: The watchdog claims Meta was aware of the scam ads but did not take adequate steps to remove them or prevent them from circulating.
• False Endorsements: The ads often feature prominent Australian personalities without their consent, creating a false sense of legitimacy.

The Prevalence of Crypto Scams on Facebook

The ACCC's preliminary research paints a concerning picture of the prevalence of crypto scams on Facebook.According to the watchdog, over half of the crypto ads on the platform are either scams or violate Meta's policies.This statistic highlights the significant risk faced by Facebook users who encounter these advertisements.While Meta disputes these figures, claiming the data is old and unreliable, the ACCC stands by its assessment.This disagreement underscores the difficulty in accurately measuring the extent of online scams and the need for more robust monitoring and enforcement mechanisms.

How Crypto Scams Operate on Social Media

Crypto scams on social media platforms like Facebook typically follow a similar pattern:

1. Attractive Advertisement: The scam begins with an eye-catching advertisement featuring a promise of high returns on a cryptocurrency investment.
2. Celebrity Endorsements (Fake): The ad often includes the image and name of a well-known personality, lending credibility to the scam.
3. Clickbait Link: The ad directs users to a website or landing page that appears legitimate.
4. Personal Information Request: The website asks users to provide personal and financial information.
5. Funds Transfer: Victims are then persuaded to transfer funds to the scammers under the guise of investment.
6. Disappearance: Once the funds are transferred, the scammers disappear, leaving the victim with significant financial losses.

The Impact on Australian Consumers

The proliferation of crypto scams on social media has had a devastating impact on Australian consumers.Many individuals have lost significant sums of money to these scams, causing financial hardship and emotional distress.The ACCC's investigation aims to protect consumers from falling victim to these schemes and to hold Meta accountable for its role in facilitating them.The impact extends beyond financial losses.Victims of these scams often experience feelings of shame, embarrassment, and distrust, which can have long-lasting psychological effects.

Real-Life Examples of Crypto Scam Victims

Stories of individuals losing their life savings to crypto scams are unfortunately common.Here are a few examples:

• A retiree invested a large portion of their retirement fund in a fake crypto scheme promoted on Facebook, losing their entire savings.
• A young professional was lured into a crypto scam by an ad featuring a celebrity endorsement, resulting in significant debt.
• A family lost their deposit for a new home after falling victim to a sophisticated crypto scam advertised on Instagram.

Meta's Response and Defence

Meta has defended its actions, arguing that it has taken steps to remove scam ads from its platforms and to prevent them from appearing in the first place.The company claims to use sophisticated technology to detect and remove fraudulent content and to work closely with law enforcement to combat online scams.However, the ACCC argues that these efforts are insufficient and that Meta has not done enough to protect its users from being targeted by scammers.Meta also contests the ACCC's data regarding the prevalence of crypto scams, arguing that it is outdated and unreliable.The company maintains that it is committed to combating online fraud and protecting its users.

Meta's Stated Measures to Combat Scams

• AI-Powered Detection: Meta claims to use artificial intelligence to identify and remove scam ads.
• User Reporting Tools: The company encourages users to report suspicious ads.
• Partnerships with Law Enforcement: Meta says it collaborates with law enforcement agencies to investigate and prosecute scammers.
• Ad Verification Processes: Meta asserts it has processes to verify the legitimacy of advertisers.

What the Investigation Means for the Future of Online Advertising

The ACCC's investigation into Meta could have significant implications for the future of online advertising and consumer protection.If the ACCC is successful in its legal action, it could set a precedent for holding social media platforms accountable for the content they host.This could lead to stricter regulations and greater scrutiny of online advertising practices.The case also highlights the need for greater transparency and accountability in the digital advertising ecosystem.

Potential Outcomes of the ACCC Investigation

• Increased Regulation: The investigation could lead to stricter regulations for social media platforms in Australia and elsewhere.
• Greater Accountability: Social media companies could be held more accountable for the content they host and the advertisements they display.
• Enhanced Consumer Protection: Consumers could be better protected from online scams and fraudulent advertising.
• Industry-Wide Changes: The investigation could prompt significant changes in the online advertising industry, leading to greater transparency and accountability.

Protecting Yourself from Crypto Scams on Social Media

While the ACCC's investigation unfolds, it's crucial to take proactive steps to protect yourself from falling victim to crypto scams on social media.Here are some practical tips:

Tips for Avoiding Crypto Scams

1. Be Skeptical of High Returns: If an investment opportunity promises unrealistically high returns, it's likely a scam.
2. Verify Celebrity Endorsements: Don't trust advertisements that feature celebrity endorsements without verifying their authenticity.Check official channels or news sources.
3. Research the Investment: Before investing in any cryptocurrency, thoroughly research the project and the company behind it.
4. Be Wary of Pressure Tactics: Scammers often use pressure tactics to rush you into making a decision.Take your time and do your due diligence.
5. Protect Your Personal Information: Never share your personal or financial information with untrusted sources.
6. Report Suspicious Ads: If you encounter a suspicious ad on social media, report it to the platform.
7. Seek Professional Advice: Consider consulting with a financial advisor before making any investment decisions.

Expert Opinions on the Meta Investigation

Industry experts have weighed in on the ACCC's investigation into Meta, offering various perspectives on the challenges and potential outcomes.Some argue that social media platforms have a responsibility to actively monitor and filter out fraudulent content, while others emphasize the importance of user education and awareness.The complexity of the issue lies in balancing freedom of speech with consumer protection and the difficulty in accurately identifying and removing sophisticated scams.

Different Perspectives on the Issue

• Consumer Advocates: Argue for stronger regulations and greater accountability for social media platforms.
• Industry Experts: Highlight the challenges of detecting and removing sophisticated scams.
• Legal Analysts: Focus on the legal implications of the ACCC's case and the potential for setting precedents.

What Happens Next?The Future of the Case

The ACCC's legal action against Meta is ongoing.The court will need to determine whether Meta engaged in deceptive conduct by allowing scam advertisements to proliferate on its platforms.The outcome of the case could have far-reaching consequences for social media platforms and the regulation of online advertising.As the case progresses, it will be crucial to monitor developments and understand the potential implications for consumers and the broader digital landscape.The wheels of justice turn slowly, but this case has the potential to reshape the relationship between social media giants and their users.

Potential Future Scenarios

• ACCC Wins: Meta is found liable and faces penalties, potentially leading to stricter regulations for social media platforms.
• Meta Wins: The court rules in Meta's favor, potentially weakening the case for greater regulation of online advertising.
• Settlement: The ACCC and Meta reach a settlement agreement, resulting in changes to Meta's advertising policies and practices.

Conclusion: Holding Social Media Giants Accountable

The ACCC's investigation into Meta over crypto scam ads highlights the critical need to hold social media platforms accountable for the content they host and the advertisements they display.The proliferation of scams on these platforms has had a devastating impact on Australian consumers, causing significant financial losses and emotional distress.While Meta defends its actions, the ACCC argues that the company has not done enough to protect its users from being targeted by scammers.The outcome of this case could have significant implications for the future of online advertising and consumer protection, potentially leading to stricter regulations and greater scrutiny of social media platforms.In the meantime, it's crucial to remain vigilant and take proactive steps to protect yourself from falling victim to these scams.Remember to be skeptical of promises that seem too good to be true, verify celebrity endorsements, research investments thoroughly, and protect your personal information.By staying informed and taking precautions, you can safeguard yourself from the dangers of crypto scams on social media.The Aussie competition watchdog investigating Meta over crypto scam ads is a landmark case and it’s crucial that consumers remain vigilant about online security.The ACCC is fighting for consumer protection in the digital age.