Meta Rejects Claims of Widespread Crypto Ad Fraud, Points to Outdated Evidence
Meta Rejects Claims – Meta, the parent company of Facebook, has firmly denied allegations that over half of the cryptocurrency ads on its platform are scams. The tech giant has argued that the data used to support these claims is outdated and has emphasized that significant measures have been implemented to address the issue.
ACCC’s Allegations Based on 2018 Data
The controversy stems from a 2022 lawsuit filed by the Australian Competition and Consumer Commission (ACCC), which recently claimed in a federal court filing that 58% of the crypto ads it reviewed on Facebook were scams. This figure was derived from an internal Meta study conducted in 2018.
However, Meta has refuted the validity of this data. In a statement to Cointelegraph, a Meta spokesperson emphasized that the ACCC’s claims are based on a “limited data set” from 2018, making it an unreliable indicator of the current situation. The spokesperson argued, “It’s unlikely that the ACCC data is an accurate representation of our platform today.”
Meta’s Efforts to Combat Scam Ads
Meta has highlighted the numerous steps it has taken since 2018 to mitigate the presence of scam ads on Facebook. According to the company, these include the use of manual reviews, advanced automated technology, and adherence to the Australian Online Scams Code (AOSC). Additionally, Meta has updated its guidelines to ensure that advertisers post legitimate content.
“We currently use, and continue to explore, a variety of methods, such as new machine learning techniques, to identify content and accounts that violate our policy,” the Meta spokesperson added. In the first quarter of 2024 alone, Meta claims to have removed 631 million fake accounts and 436 million pieces of spam content from Facebook, with 99.4% of fake accounts and 98.2% of spam content being actioned before users reported them.
Continued Legal Challenges for Meta
Despite Meta’s defense, the company continues to face legal action from high-profile figures over the issue of crypto scams. Several celebrities have accused Meta of inaction, particularly regarding the unauthorized use of their likenesses in fraudulent ads.
One notable case involves billionaire Australian mining tycoon Andrew Forrest, who filed a civil suit against Meta in the California Northern District Court in June 2022. Forrest claimed that “Facebook’s self-help advertising interface materially helped scammers develop” fraudulent ads.
Similarly, Divya Das and Kim Bildsøe Lassen, prominent Danish television hosts, reported Meta to the police in April after discovering that their images had been used in thousands of Facebook ads without their consent. Four scam victims in Japan also launched legal action in April after being deceived by online investment ads that featured images of celebrities.
Meta’s Ongoing Commitment to User Protection
Meta maintains that it is committed to protecting its users and keeping scams off its platforms. The company has stated that it will continue to employ a variety of methods to detect and prevent fraudulent content, including leveraging new machine learning techniques.
As Meta prepares to respond to the ACCC’s allegations in court, the company’s ability to defend its platform’s integrity and its efforts to curb scams will be closely watched by the global tech and financial communities.
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