Australia Removes 9,000 Scam Ads as Meta Collaborates with Banks Following $43.4 Million in Social Media Scam Losses

Australia Tackles Deepfake Scams with New Reporting Initiative

Australians may soon witness a reduction in deepfake images featuring celebrities in compromising situations or promoting fraudulent cryptocurrency investments.

Meta, the parent company of Facebook and Instagram, has initiated a comprehensive reporting mechanism aimed at combating these deceptive practices.

In its first six months of operation, the initiative has led to the removal of approximately 8,000 scam pages and 9,000 AI-generated celebrity scams from its platforms.

How Much Are Australians Losing to Scams?

From January to August 2024, Scamwatch reported a staggering $43.4 million in losses attributed to social media scams, with nearly $30 million of that amount linked to fraudulent investment schemes.

This alarming statistic highlights the urgent need for effective measures to protect users from such scams.

Notable public figures like David Koch, Gina Rinehart, Anthony Albanese, Larry Emdur and Guy Sebastian have been among those whose images were misused to promote these deceptive investment offers.

What Steps Are Being Taken to Combat Scams?

In response to mounting pressure from politicians and regulators, Meta has launched the Fraud Intelligence Reciprocal Exchange (Fire) in partnership with the Australian Financial Crimes Exchange (AFCX).

This platform allows banks to report known scams directly to Meta while enabling the company to share its findings with financial institutions.

Seven major banks—ANZ, Bendigo Bank, CBA, HSBC, Macquarie, NAB, and Westpac—are actively participating in the Fire initiative.

Since its pilot launch in April, there have been 102 reports leading to the removal of over 9,000 scam pages.

David Agranovich, Meta’s director of global threat disruption, expressed optimism about the initiative's potential, stating,

“This channel allows financial institutions to provide insights and intelligence that we as a platform may not and often do not see from scam activity that might be happening on those financial institutions’ services.”

However, despite these efforts, the number of reports generated by the Fire initiative pales in comparison to Scamwatch’s figures, which recorded 1,600 reported losses from social media scams in August alone.

Can Information Sharing Make a Difference?

Rhonda Lau, head of stakeholder engagement at AFCX, articulated the program’s mission:

“The aim of the program was to make Australia a less appealing target for scammers.”

By integrating data from various banks and Meta, the initiative strives to illuminate the broader landscape of scam activity beyond the confines of social media platforms.

Meta is not only focused on addressing scams but is also proactive in its broader strategy to eliminate fraudulent accounts globally.

In the last quarter, the company reported taking down 1.2 billion fake accounts, with 99.7% removed before any user complaints were lodged.

Agranovich acknowledged the challenges users face when trying to report scams, promising improvements in the reporting process.

He said,

“What we find is there’s a huge chunk of things to get taken down in an automated way… but there are still things that are making it through.”

He emphasised the importance of continued collaboration with partners like AFCX to enhance their detection systems.

Are New Regulations on the Horizon?

In the context of these developments, Australia’s assistant treasurer, Stephen Jones, recently unveiled draft legislation for a scams prevention framework.

This proposed legislation aims to enforce strict codes for banks, telecommunications companies, and social media platforms, holding them accountable for taking decisive action against scams.

The consultation period for the draft legislation concludes on 4 October 2024, indicating a potential shift in how Australia approaches scam prevention.

The impending legislation also includes significant penalties, proposing fines of up to A$50 million ($34 million) for companies that fail to comply with anti-scam measures.

The urgency of this legislation reflects the growing concern over the rising number of scams, with Australian reports surging nearly one-fifth in 2023, resulting in losses totaling A$2.7 billion.

What Legal Challenges is Meta Facing?

The urgency of addressing these scams is further compounded by ongoing legal challenges facing Meta.

The Australian Competition and Consumer Commission has accused the company of failing to curb the spread of cryptocurrency advertisements using celebrity images, estimating that 58% of such ads on Facebook were likely scams.

Meta is contesting these allegations, which have not yet reached the courtroom.

Additionally, mining magnate Andrew Forrest is pursuing a separate civil lawsuit against Meta, claiming that the platform has enabled the circulation of thousands of bogus cryptocurrency advertisements featuring his likeness.

Forrest has been vocal about the impact of these scams on Australian consumers, having warned Meta about the issue as far back as 2019.

Will Collaboration with Financial Institutions Prove Effective?

Despite these challenges, Agranovich remains hopeful about the collaboration with Australian banks.

He remarked on the need for ongoing vigilance and partnership in the fight against online scams, stating,

“What we find promising is that a small amount of high-value signals can help us identify much wider fraud and scam activity.”

As the battle against digital fraud intensifies, the combined efforts of Meta, financial institutions, and the Australian government could significantly alter the landscape of online safety.

While the road ahead is fraught with challenges, the introduction of the Fire initiative marks a proactive step toward mitigating the impact of scams on the Australian public.