50% of Crypto Ads on Facebook Are Scams: ACCC

Australia’s competition watchdog has uncovered that a significant portion of cryptocurrency ads on Facebook are either fraudulent or in violation of Meta's guidelines.

Preliminary findings suggest that over 50% of these ads are problematic.

The Australian Competition and Consumer Commission (ACCC) had previously taken legal action against Meta, accusing the company of facilitating ads that promoted fake celebrity-endorsed crypto schemes. The court has yet to schedule a hearing for the case.

The ACCC’s latest federal court submission indicates that more than 58% of the crypto ads examined breached Meta’s advertising policies or were potentially scams. These ads often misuse the images of well-known Australians and celebrities.

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Investment scams remain a major concern in Australia, with Scamwatch reporting 3,456 cases totaling over $78 million in losses so far this year.

The ACCC’s investigation initially flagged 600 ads but is now focusing on 234. The watchdog anticipates discovering more instances of fraudulent ads as the case unfolds.

The ACCC argues that Meta has been aware of misleading crypto ads on its platform for years and could implement better measures to warn users about suspicious ads. Despite removing problematic ads and banning some accounts, Meta continues to display similar content and profit from it.

Alexander Stefanov