Meta has faced significant pressure to address the issue of deep fake images involving public figures and celebrities. These scams, often generated by artificial intelligence, have been used to trick consumers into giving money to fake investment schemes. In October alone, the company took down 8,000 such celebrity-bait ads from Facebook and Instagram. Now, Meta is taking action to tighten requirements for ads promoting financial services in an effort to close the door on scammers.

Meta's Battle Against Deceptive Advertising

How do fake online celebrity investment scams work?

Deepfakes are highly lifelike impersonations of real people created through AI. Scammers create ads that make victims believe the celebrities actually use certain investment platforms and make money. Victims are then asked to sign up to these seemingly realistic platforms and provide their personal details. Scammers often create a sense of urgency by promoting "investments" with incredible return rates that are only available for a short time. For example, former Sunrise host David Koch has long been a victim of scammers using his image on social media. The ads typically link to fake media articles that attribute quotes to Koch endorsing a cryptocurrency or other money-making scheme. Users are then contacted by scammers to convince them to deposit funds.

What financial ads will be targeted?

Meta has announced that advertisements identifying a range of financial products or services such as insurance, mortgages, loans, investment opportunities, and credit cards will need to be verified. Once an advertiser is verified, they will need to include their payer and beneficiary information in their ads in the form of a "Paid for By" disclaimer that will be visible to all users. Verified financial services ads will also be available for users to view on the Meta Ad Library while the ad is active.

Why is Paddington Bear pushing money transfer scams?

Scammers are using multinational brands, including a food delivery company and beloved character Paddington Bear, to steal money from Australian Facebook users. However, Meta says this may vary depending on the type of advertisement and the market it is targeting. Meta ANZ managing director Will Easton recognizes the impact that finance scams can have on Australian consumers. He states that the introduction of financial advertiser verification is an important additional step towards protecting people from these sophisticated scammers.

How many investment scams have been reported this year?

Between January and September 2024, Scamwatch recorded 5,738 investment scams, with a total loss of more than $135 million. Approximately one-quarter of these scams were serviced through social media. The National Anti-Scam Centre has received more than 400 reports of these scams in 2023, including one where an Australian man lost $80,000 in cryptocurrency.

Banks welcome the new verification process

Westpac customer and corporate group executive Carolyn McCann believes that Meta's new verification process is a "step in the right direction." She encourages Meta to do more to make their sites scam-free and emphasizes the need for a united response and continued investment to put criminals out of business. Earlier this year, Ms. McCann wrote to Meta about 360 different scams on Facebook that Westpac customers had complained about.The changes to Meta's advertising rules will start to roll out to advertisers over the next month. By February 2025, advertisers will be required to complete the verification process before publishing qualifying ads to audiences in Australia. However, Meta warns that the dates may vary.