Editorial
For scam ads, the bucks need to stop with Meta and Google
There would be few more obviously despicable businesses than that of a scammer. So what do we say of those who facilitate, either tacitly or explicitly, scammers?
The scam is, of course, not new to human behaviour. The phrase “There’s a sucker born every minute” has been in use for more than 100 years, but with the creation of the internet, and the rise of tech companies and social media, the scam has become a global blight. It is an industry that preys on people to make fortunes for itself while being indifferent to the carnage.
An ad running on Facebook and Instagram this week linked to a scam website featuring a fake endorsement from businessman Dick Smith.
Australians, unfortunately, are seen as soft targets. Last year, they lost $2.7 billion to scams. Australia’s Scamwatch says that of the almost 200,000 scams reported to it in the first nine months of this year, social media accounted for a quarter of losses. That is an outsized share as it was the source of only 6.4 per cent of the reports.
As Catriona Lowe, an Australian Competition and Consumer Commission deputy chair, has said: “Social media does tend to offer a pretty good return on investment for scammers.” The ACCC has brought legal action against Meta over fake celebrity scam ads, alleging it did not take reasonable safeguards to prevent or reduce the ads.
Last weekend’s Age investigation into the role of fake ads on Facebook and Instagram, owned by Meta, and on Google was profoundly disturbing and only further confirms the merits of regulatory action.
Despite reporting by this masthead highlighting Quantum AI scam ads on Facebook and Instagram, this new advertisement for the scam was live on Tuesday afternoon. Credit: Meta Ad Library
The investigation found ads on Google and Meta clearly directing users to infamous scams. Only after Meta was contacted were some ads removed. Meta said it had “taken further enforcement actions on violating entities, including removing numerous other ads, pages and ad accounts from accessing our advertising tools”.
As for Google, The Age found that scam websites which were subject to Australian Securities and Investments Commission investor alerts and similar warnings offshore were sometimes served and suggested to searchers ahead of these red flags.
Both companies say they take down content that breaches their rules. But, in our view, it is simply not good enough to act after the fact. These companies are benefiting from an illegal activity. To cry ignorance, or we’re working on it, give us more time, is not good enough.
Every advertiser should be vetted as to whether it is a legitimate business, before an ad is published. Ads, too, could face tougher screening: a fake Anthony Albanese touting cryptocurrency should surely raise a red flag.
The cost of action should be placed against the cost of the status quo. Because behind the one innocent click is an army of criminals waiting, without compunction, to drain a person’s life savings, their superannuation, their future. And once the money is gone, so too are any hopes of retrieving it.
Shockingly, Meta has this week continued to publish ads spruiking one of the notorious fraudulent investment brands repeatedly highlighted by this masthead.
The Facebook and Instagram advertisements promoting the Quantum AI scam linked to a fake news article heralding a “new investment platform” purportedly endorsed by Dick Smith and other famous Australians.
It’s more than perplexing that Meta isn’t able to detect and block these obvious scam ads; it takes only a quick keyword search using the company’s own ad library.
Mark Solomons investigates scammers and says of Facebook and Google: “They’re clearly not doing enough.” He’s right. Given the vast structure of scam operations, it is convenient for the mega companies to leave it all to someone else to fix.
The federal government’s Scams Prevention Framework Bill is a welcome step in trying to bring the perpetrators and facilitators of scams to justice. Initially, the laws are set to apply to banks, telcos, social media platforms, paid search engine advertising and direct messaging services. These companies could be forced to compensate victims if they don’t meet the obligations of new mandatory scam codes.
It is fitting that the buck stops with the likes of Meta and Google for their share of the harm. If they shut the doors to scammers, the criminals would not be able to enter the lives of their victims and, in many cases, ruin them.
The companies have taken issue with aspects of the proposed laws. We would urge lawmakers to hold their course. It’s high time responsibility was taken by those who help peddle this modern misery.
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