Social media platforms increasingly becoming hotspots for fraud, with cybercriminals using sophisticated techniques to deceive users. From fake investment schemes to phishing attacks, the scale of the problem has prompted major platforms such as Facebook, Instagram, and even YouTube to step up their security measures.
A particularly worrying trend is the use of deepfake technology to create fake celebrity endorsements to trick users into trusting fraudulent financial services. According to a report by Deloitte, a prominent financial research firm, AI-generated content was responsible for more than $12 billion in fraud losses last year. Projections suggest that these losses in the US could reach $40 billion by 2027.
In response, Meta (parent company of Facebook and Instagram) has introduced new rules designed to protect Australians from these scams.
Meta’s move comes in the wake of a rise in “celebrity bait” scams that use AI-generated images and videos of prominent figures such as David Koch, Gina Rinehart and Anthony Albanese to promote fake investment opportunities.
According to a report by the Australian Broadcasting Corporation, Australians lost more than $135 million to investment fraud between January and September 2024, with around a quarter of these scams occurring on social media platforms. These ads appear very convincing, encouraging users to invest in schemes that promise high profits but ultimately lead to significant financial losses.
To combat this, Meta has introduced stricter authentication requirements for advertisers promoting financial products and services. Advertisers will now be required to verify their Australian Financial Services License number, payer and payee details before running their ads. Once approved, the ad will display a “payment amount” disclaimer, ensuring transparency and helping users distinguish genuine from fraudulent content.
This is not Meta’s first attempt to fight fraud. In October, the company announced it had removed 8,000 misleading ads, including fake celebrity endorsements. The new verification policy marks a broader step to curb fraudulent activity on the platform.
