Meta denies claim more than half of Facebook crypto ads are scams

[TomPluz]

Facebook’s parent company, Meta, has denied claims that over half of crypto ads on Facebook are scams, arguing that the data is outdated and that it has since taken steps to address the issue.

As part of its 2022 lawsuit, the Australian Competition and Consumer Commission (ACCC) claimed in a recent filing to federal court that 58% of the crypto ads it reviewed on Facebook are scams.

A Meta spokesperson said the data in the ACCC’s statement of claim relies on old information from 2018 and is from a “limited data set” and that other contact methods are still the top way people are scammed.

The ACCC claims it identified 600 ads during its investigation, and since “at least January 2018,” Meta has been aware that many of the crypto ads on Facebook have used misleading promotional practices.

It also alleged Meta does take down individual ads once complaints are received and ban associated accounts; however, it continues to earn revenue from similar ads.

More of this news here.


Facebook is allowing scam ads to proliferate all because they are making big money out of them. In the past, I used to be reporting these scam ads but I got tired when I always see them almost everyday most especially here in my country. These supposed "crypto scam ads" are even using well-known personalities as if they are their own endorser for their supposed money- making schemes. I understand that Facebook is strict in everything but I don't get it why scam ads still got in into their platform. Maybe it is really time for Facebook to be serious in vetting their ads and use the same kind of being strict to legitimate advertisers. Allowing these scams are also hurting the reputation of the whole crypto industry as many may think that in this industry all we do is scamming people.

[yhiaali3]

Yes, I agree with you that advertisers should be strict, whether on Facebook or other social media, because allowing these scams harms the reputation of the entire crypto industry, as actually happened in 2017-2018 when the ICO wave spread, which caused great damage to the reputation of the industry, and we are still suffering from its effects to this day.

As for Facebook, even if they take stricter measures with advertisers, they will not be able to prevent fraudulent ads completely, but of course they can limit them as much as possible, but in the end we must not forget that Meta is a profitable company and its profits come primarily from advertising, so they may not like such strict measures that may harm their profits.

[ABCbits]

Even though 58% figure comes from old data, it's lower than i expected. I guess ACCC doesn't count some misleading or shady crypto ads.

It's also weird Meta claim they perform manual, while it's common to see questionable crypto ads. I wonder whether they don't pay their reviewer well enough or providing poor guideline to the reviewer.

[electronicash]

Even though 58% figure comes from old data, it's lower than i expected. I guess ACCC doesn't count some misleading or shady crypto ads.

It's also weird Meta claim they perform manual, while it's common to see questionable crypto ads. I wonder whether they don't pay their reviewer well enough or providing poor guideline to the reviewer.

yet this is the very reason why they ban crypto ads back in 2018 as well which is because of the crypto scams. you would think they have it figured already because they unban the adverts of these crypto companies already giving a green light for all the scams too.  they are busy shutting up the fake political news and yet they are allowing the scams.

i'm sure there are victims to those scams since the popularity of crypto is bringing social media users to be investing on new projects advertised on facebook.

[GigaBit]

There are frequent complaints that the popular social media platform Facebook is focusing more on generating revenue. As Facebook ads are mostly scams, people's resentment towards them is gradually increasing. But the problem is that Facebook authority is not paying attention to it . Even if a scam is reported they do not take any action, if reported again and again they take away the ability to report. Facebook cannot avoid the responsibility of the complaints that are coming against its self. Many people are losing their money due to various scam ads. On the other hand, people are also losing faith in social media. After receiving any news, one has to take the help of another site to understand whether it is authentic or not. I think this is clearly represents a disadvantage for Facebook.

Facebook authorities should take quick action in this regard otherwise its volume will increase and people will lose trust in it. The authority should take a quick action to remove those scam ads quickly. Now many people are aware but still there are many people who believe those scam ads and lose their hard earned money.

[Lucius]

Of course, no one will admit to profiting from advertisements related to illegal activities, although it is no secret that most of these large companies make minimal efforts to fight against it for a simple reason - the law protects them from any liability. Just look at what is being served to users who use Google search engine through ads that appear at the top of the search results, or what hosting companies are doing to prevent phishing.

Where there are the most users, there are also the most scammers, and it will be like that until all these companies set high standards and hire people who will check what is good and what is bad. I have no doubt that they have the money to do it, but I'm sure they just don't care as long as there is no accountability for such failures.

[hugeblack]

The issue of advertising needs better laws as these ads have become more annoying and fraudulent than a marketing service to the point that I have stopped using many services because of these annoying ads. But they will not be able to get anything in such trials as these companies have the ability to evade the laws and in the worst cases are able to pay legal settlements.

[Freemind]

Meta tells the truth about Facebook, 50% of its cryptocurrency-related ads are not scams, * 99% are. The ironic, and also hypocritical, thing about all this is that Meta doesn't care, since they make good profits by showing those ads, and they know that in terms of legal problems nothing will happen, that is why they continue with their usual activity.

Although many people believe that this type of business and infractions do not have an easy solution, in reality they are easy to solve, it would only be necessary to fine the amount obtained in profits multiplied by the total number of global Facebook users, and then donate the resulting amount to charitable associations.

* Dramatization (or not).

[Captain Corporate]

They can "deny" all they want, the reality is that they are allowing scams to be freely putting their ads there, and they are very very bad at detecting crypto scams. I keep seeing it on Instagram all the time, I do not use facebook all that much, but the Instagram ads that I see on reels is beyond insane, I had a lot of time to travel lately and during my travels I use a bus or a ferry and spend my entire time watching reels because I have nothing else I can do unfortunately, so I see thousands of ads that are fake and rug pulls and scams. They do not care enough at all, and its too obvious.

[Aanuoluwatofunmi]

Most of these ads we are seeing on facebook were not all coming form meta, some were from third party promoting organization in which facebook is taking money form to help create an awareness for through ads, just as we have some with the bad intentions for them to use the avenue in scamming others, some are making a genuine promotion of their services though ads and they are achieving their targets in it.

[Gposas]

Of course, no one will admit to profiting from advertisements related to illegal activities, although it is no secret that most of these large companies make minimal efforts to fight against it for a simple reason - the law protects them from any liability. Just look at what is being served to users who use Google search engine through ads that appear at the top of the search results, or what hosting companies are doing to prevent phishing.

Where there are the most users, there are also the most scammers, and it will be like that until all these companies set high standards and hire people who will check what is good and what is bad. I have no doubt that they have the money to do it, but I'm sure they just don't care as long as there is no accountability for such failures.

You've said it all, they give no attention on any reported scam.
This is the major reason it's hard to get referrals on anything related to crypto from Facebook in my area, because everyone sees it a scam, not wanting to know if it's authentic even if you provide a solid proof.
This is generally giving a bad name to crypto... Making users unable to know which is real or a scam. Facebook should work on reducing scam ads to enable users understand, join, invest and gain from real crypto ads.
I've learnt to make my own research on any crypto ads I see on any social media before investing.

[Jating]

Of course they are going to deny it, no business has admit to their mistakes. But crypto enthusiast knows the real score here, we have seen hundreds if not thousands of scam crypto ads in all of their platforms. And yet, they still continue because they are making profits out of it. And so the only weapon for crypto ads is to really educate ourselves and not rely to Meta to filter out everything for us. It's not a perfect world, but I do hope that there will be less victims every year and we continue to be very vigilant not to fall for it.

[NotATether]

I mean, why wouldn't they be?

Facebook is still the dominant social media network for third-world countries, and these people tend to be more gullible to crypto scams than others because of their limited knowledge of crypto anyway. So it wouldn't surprise me to see scammers make a bunch of crypto scam ads since they are usual for targeting the local population.

[Faisal2202]

Facebook is allowing scam ads to proliferate all because they are making big money out of them. In the past, I used to be reporting these scam ads but I got tired when I always see them almost everyday most especially here in my country. These supposed "crypto scam ads" are even using well-known personalities as if they are their own endorser for their supposed money- making schemes. I understand that Facebook is strict in everything but I don't get it why scam ads still got in into their platform. Maybe it is really time for Facebook to be serious in vetting their ads and use the same kind of being strict to legitimate advertisers. Allowing these scams are also hurting the reputation of the whole crypto industry as many may think that in this industry all we do is scamming people.

I remember the last post where I talked about scam ads on Facebook (Meta must face Australian billionaire Forrest's US lawsuit over scam Facebook crypto adsFacebook has always saved itself using section 230 last time the judge did not ignore the case on the basis of section 230 but I can see the case did not bring anything on the table and Facebook is still approving ads actually their way to approving ads is totally automatic and they are not doing it manually.

If they would hire some more people who will manually approve the ads then that would decrease the scam on Facebook but why would they do it I mean this will not only decrease the revenue they will be generating from these ads but in hiring people they have to give them pays as well. Overall this needs proper solution.

[MrSpasybo]

Facebook is allowing scam ads to proliferate all because they are making big money out of them. In the past, I used to be reporting these scam ads but I got tired when I always see them almost everyday most especially here in my country. These supposed "crypto scam ads" are even using well-known personalities as if they are their own endorser for their supposed money- making schemes. I understand that Facebook is strict in everything but I don't get it why scam ads still got in into their platform. Maybe it is really time for Facebook to be serious in vetting their ads and use the same kind of being strict to legitimate advertisers. Allowing these scams are also hurting the reputation of the whole crypto industry as many may think that in this industry all we do is scamming people.

Nothing surprises me anymore, no matter the platform: Meta or Google, Twitter, Youtube, TikTok, Telegram... Most of the ads I see are worthless or even related to fraudulent projects in the crypto market. Nonsense knowledge is shared, wrong trading experiences are promoted, and memecoins projects appear everywhere. I've been living with them for years now, since the first day I joined the crypto market!

I hope for the best: Meta and many other platforms will find a way to limit fraudulent ads. AI could be one of the effective ways they should apply to save effort, time, and money. I also don't support everything being controlled too tightly, which could come with extreme control and management from governments over new projects in this market. I don't want to see Ton have to register with a certain government before being allowed to appear in ads on Youtube ^^