Fake Crypto Ads Rise, Facebook Deals With Australian Authorities

Nicole Kidman, her photo was used for a crypto scam ad. (photo: doc. Instagram)

JAKARTA - Australian consumer and competition watchdog (ACCC) is investigating Facebook's parent company, Meta Platform Inc., for a long-running series of fake cryptocurrency ads on the platform.

The news comes just a day after Cointelegraph reported that billionaire entrepreneur Andrew "Twiggy" Forrest is suing the social media giant for allegedly serving crypto-scam ads and fake articles using his name and likeness to users.

Many other high-profile celebrities from Hugh Jackman to Nicole Kidman have also been fraudulently “hired” to lure users into the investment scam.

The ACCC alleges that Meta allowed crypto scammers to violate Australian consumer laws, and defrauded victims of hundreds of thousands of dollars.

3 comments to The Australian, ACCC Chair Rod Sims said that while their investigation has similarities to the Forrest case, "the ACCC investigation is separate and involves different legal questions."

While Forrest's case concerns a potential violation of the Australian Commonwealth Penal Code, the ACCC will examine whether Meta has "raised a concern" under the Australian Consumer Act.

“Like Dr Forrest, we think Meta should do more to detect, prevent, and remove false or misleading ads from the Facebook platform so that consumers are not misled and scammers are prevented from reaching potential victims,” Sims said, as quoted by Cointelegraph.

Forrest claims that by failing to take adequate steps to eliminate fraud from being shared on its platform, Meta is not only violating Australian money laundering laws, but is behaving "criminally reckless".

He was originally due to take his case to the Western Australian Magistrates' Court on March 28, with a commitment hearing expected later this year.

He also launched simultaneous civil proceedings with the California Superior Court last September, seeking redress. The case is still pending, with a civil case date yet to be set.

In 2020, the Australian Securities and Investments Commission (ASIC) issued a warning about fake crypto advertisements endorsed by celebrities, including Jackman, Kidman and even Waleed Aly.

Other celebrities including Elon Musk, Bill Gates and Richard Branson have also had their images stolen to deal with crypto scams.

Facebook users in Australia have reported losing hundreds of thousands to scams, including one alleged victim who told The Australian they thought the scam was legitimate because it featured Forrest.

"Andrew Forrest is an icon to millions of Australians and you have the utmost respect for him, anything involving him you think is legal because it was published through Facebook," they said.

In 2019, Forrest was among several Australian celebrities, including Kate Winslet, who were falsely quoted testifying for fake cryptocurrencies.

One version of the scam cites celebrities in fake mainstream news articles advertising fake Bitcoin investment platforms.

As reported by Cointelegraph in August 2021, investment scams cost Australian investors more than A$50.5 million in the first six months of 2021, with crypto scams contributing more than 50% of losses.