Social media giant takes action against scam ads amidst mounting pressure and new government legislation
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In an era where the digital landscape is as much a part of our daily lives as the air we breathe, it's no surprise that the internet can be a double-edged sword.
On one hand, it offers us a world of information and connectivity at our fingertips. On the other, it opens the door to a host of nefarious activities, including the proliferation of scam advertisements that prey on the unsuspecting.
For our tech-savvy seniors who have embraced social media, this is a particularly pressing issue.
Recently, Meta, the parent company of social media behemoths Facebook and Instagram, has been under the microscope for its role in allowing scam ads to target Australians, including many over 60 who are increasingly active online.
After significant pressure and a revealing investigation by a leading masthead, Meta has pledged to introduce stricter rules on advertisers to combat these deceptive practices.
The investigation uncovered that Meta was profiting from ads promoting notorious scams, reaching tens of thousands of Australians.
Many of these ads were from pages that were clearly not legitimate investment companies, such as a women's clothing shop in Ukraine, and some even featured manipulated videos of Prime Minister Anthony Albanese.
This is particularly alarming as it shows the lengths scammers will go to create a veneer of credibility.
In response to the growing outcry and the potential for new federal government laws targeting digital platforms, Meta has announced new rules for advertisers promoting financial products or services.
Advertisers will now be required to provide credentials, verify the company the ad is for, disclose who is paying for it, and identify the beneficiary.
This transparency is a step forward in allowing social media users to understand who is behind the ads they see.
Furthermore, advertisers of investment schemes will need to provide their Australian financial services licence number, if applicable, or government-issued ID or business documents.
This is a significant move, as it targets those selling insurance products, mortgages, loans, investment products and opportunities, and credit cards to Australians.
‘Meta recognises the devastating impact that finance and investment scams can have on Australian consumers,’ Will Easton, Managing Director of Meta Australia and New Zealand, stated.
‘The introduction of financial advertiser verification is an important additional step towards protecting people in Australia from these sophisticated scammers, who try to impersonate legitimate financial institutions and advertisers.’
Meta is among the companies that could be affected by new federal government legislation requiring banks, telecom companies, and digital platforms to compensate victims if they fail to comply with mandatory scam codes.
Financial Services Minister Stephen Jones and advocates have been vocal in calling for Meta to improve its advertiser verification processes.
Following investigations by this masthead, Minister Jones also instructed his department and office to examine whether Meta was violating existing laws, including its criminal and civil responsibilities.
‘It’s not good enough that they don’t have a system which enables blatantly criminal material to be removed,’ he said.
On Monday, December 2, a spokesperson for Minister Jones stated that while Meta's announcement was appreciated, further action was necessary.
‘Social media platforms facilitate the most scam activity across the economy,’ the spokesperson pointed out.
‘The government’s Scams Prevention Framework will lift obligations to protect consumers from scammers across the entire economy, with penalties for businesses that don’t meet the standard.’
Meta announced it will begin implementing verification changes over the next month, with the process set to be completed by February next year.
Meta's decision to intensify its efforts against scam advertisements follows mounting pressure from both regulators and the public, highlighting the increasing scrutiny on social media giants.
This move is particularly significant in light of the recent CHOICE Shonky Awards, which exposed dubious practices within the industry, including those of Meta, underscoring the need for greater accountability and consumer protection in the digital space.
We'd love to hear your thoughts and experiences with online ads. Have you encountered any scams? How do you ensure the ads you're seeing are legitimate? Share your stories in the comments below, and let's help each other stay safe in the digital world.
On one hand, it offers us a world of information and connectivity at our fingertips. On the other, it opens the door to a host of nefarious activities, including the proliferation of scam advertisements that prey on the unsuspecting.
For our tech-savvy seniors who have embraced social media, this is a particularly pressing issue.
Recently, Meta, the parent company of social media behemoths Facebook and Instagram, has been under the microscope for its role in allowing scam ads to target Australians, including many over 60 who are increasingly active online.
After significant pressure and a revealing investigation by a leading masthead, Meta has pledged to introduce stricter rules on advertisers to combat these deceptive practices.
Meta pledged tighter rules for Facebook and Instagram advertisers to combat scam ads targeting Australians. Credit: Unsplash / Dima Solomin
The investigation uncovered that Meta was profiting from ads promoting notorious scams, reaching tens of thousands of Australians.
Many of these ads were from pages that were clearly not legitimate investment companies, such as a women's clothing shop in Ukraine, and some even featured manipulated videos of Prime Minister Anthony Albanese.
This is particularly alarming as it shows the lengths scammers will go to create a veneer of credibility.
In response to the growing outcry and the potential for new federal government laws targeting digital platforms, Meta has announced new rules for advertisers promoting financial products or services.
Advertisers will now be required to provide credentials, verify the company the ad is for, disclose who is paying for it, and identify the beneficiary.
This transparency is a step forward in allowing social media users to understand who is behind the ads they see.
Furthermore, advertisers of investment schemes will need to provide their Australian financial services licence number, if applicable, or government-issued ID or business documents.
This is a significant move, as it targets those selling insurance products, mortgages, loans, investment products and opportunities, and credit cards to Australians.
‘Meta recognises the devastating impact that finance and investment scams can have on Australian consumers,’ Will Easton, Managing Director of Meta Australia and New Zealand, stated.
‘The introduction of financial advertiser verification is an important additional step towards protecting people in Australia from these sophisticated scammers, who try to impersonate legitimate financial institutions and advertisers.’
Meta is among the companies that could be affected by new federal government legislation requiring banks, telecom companies, and digital platforms to compensate victims if they fail to comply with mandatory scam codes.
Financial Services Minister Stephen Jones and advocates have been vocal in calling for Meta to improve its advertiser verification processes.
Following investigations by this masthead, Minister Jones also instructed his department and office to examine whether Meta was violating existing laws, including its criminal and civil responsibilities.
‘It’s not good enough that they don’t have a system which enables blatantly criminal material to be removed,’ he said.
On Monday, December 2, a spokesperson for Minister Jones stated that while Meta's announcement was appreciated, further action was necessary.
‘Social media platforms facilitate the most scam activity across the economy,’ the spokesperson pointed out.
‘The government’s Scams Prevention Framework will lift obligations to protect consumers from scammers across the entire economy, with penalties for businesses that don’t meet the standard.’
Meta announced it will begin implementing verification changes over the next month, with the process set to be completed by February next year.
Meta's decision to intensify its efforts against scam advertisements follows mounting pressure from both regulators and the public, highlighting the increasing scrutiny on social media giants.
This move is particularly significant in light of the recent CHOICE Shonky Awards, which exposed dubious practices within the industry, including those of Meta, underscoring the need for greater accountability and consumer protection in the digital space.
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