The recent news showcases an effort to crack down on social media scams. In October 2024, Meta said it removed 8,000 so-called ‘celeb bait’ ads, in a joint effort with Australia-based banks to reduce the number of scams that leverage images of celebrities to trick consumers into giving money to fake investment schemes.
From now on, advertisers must verify their beneficiary and payer information, including their Australian Financial Services License number, prior to the roll out of financial services advertisements, according to Meta. The company’s ANZ managing director stated that the introduction of financial advertiser verification is an important additional step towards protecting people in Australia from sophisticated scam attacks.
After the verification process is complete, advertisers will need to mention their payer and beneficiary information in their ads, which will have to be clearly visible in a ‘Paid for By’ disclaimer after the ad is approved, Meta continued.
Recently, Australia's centre-left government renounced plans to fine social media platforms up to 5% of their global revenue for failing to prevent the spread of misinformation online, according to The Economic Times.
The proposed bill came after Canberra leaders denounced foreign tech companies for ‘overriding Australia’s sovereignty’ and, with federal elections coming next year, further developments could be expected.
Earlier in December 2024, the Australian government approved a landmark law which prohibits children under 16 from using social media platforms.
In October 2024, the US-based multinational technology corporation expanded its information-sharing partnership with banks across the UK to safeguard individuals against fraud and scams.
The recent efforts to combat scammers might be an answer to multiple legal problems that have been associated with Meta's fraud prevention and digital identity protection policies in the not-so-distant past. Earlier in October, UK-based fintech Revolut urged Meta to share responsibility for reimbursing users who fall victim to fraudulent activities. Also in October 2024, the US-based company received a USD 102 million fine from the Irish DPC over not encrypting user passwords.
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