Meta is implementing new measures to make it harder for fraudulent celebrity investment scams to operate on Facebook and Instagram by requiring financial advertisers to undergo verification.
Starting in early February, advertisers wishing to promote financial services must verify the identities of both the payer and the beneficiary. Companies will need to provide their Australian financial services license number or state an exemption, while individuals must present a government-issued ID.
The Australian Securities and Investments Commission will verify the license numbers.
This requirement will apply to advertisers worldwide targeting Australian audiences on Meta’s platforms. Advertisers will also have to verify their companies by submitting business documents. The person completing this process must prove their employment by providing a work email address.
Similar to political ads, financial advertising will require a disclaimer that discloses who is behind the advertisements.
The verification process will begin for all advertisers in early February, expected to take about six weeks to complete.
Meta has faced increasing pressure from politicians and regulators to address the rise of scams involving deepfake images of public figures, including individuals like Martin Lewis and Anthony Albanese, which have been used to promote fraudulent investment schemes.
As of September, reported losses from investment scams in Australia reached $135 million in 2024, with $35 million attributed to scams on social media platforms, according to the National Anti-Scam Center.
Meta is currently under scrutiny from the Minister Andrew Forrest regarding its failure to prevent scams exploiting his likeness, in addition to a lawsuit from the Australian Competition and Consumer Commission.
While similar advertising verification measures are already in place in Taiwan and the United Kingdom, Australia’s launch precedes the federal government’s upcoming legislation focused on scam prevention, which is currently being reviewed by Parliament and will mandate that digital platforms verify advertisers.
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David Agranovich, Meta’s Director of Global Threat Disruption, informed Guardian Australia that the company anticipates that scammers will attempt to circumvent both automated and manual detection methods that Meta has established, but these new regulations should be beneficial.
“Criminals are highly adaptable and motivated, not just on Facebook but across the internet. Therefore, the more obstacles we can place in their way, the less effective they become, driving up their costs and ultimately leading to fewer of our platforms being exploited by criminals,” he stated.
This approach adds a significant level of friction to advertisements that impersonate legitimate financial service providers.
Last month, Meta also began testing facial recognition technology in advertisements to identify potential misuse of fake celebrity images.
A parliamentary committee looking into the federal government’s anti-fraud legislation is expected to report in late January.