Meta, the parent company of Facebook and Instagram, has unveiled a series of stringent measures aimed at fraudulent financial advertisers targeting Australian users. The initiative seeks to combat the growing menace of online scams that exploit social media platforms to deceive users.
In a statement released on Monday, Meta outlined new verification requirements for financial product and service advertisers. Advertisers must now verify their beneficiary and payer information, including providing their Australian Financial Services License (AFSL) number, before running advertisements.
This information will be visible to users through a “Paid for By” disclaimer after the ad is approved, bolstering transparency and accountability.
“The introduction of financial advertiser verification is an important additional step towards protecting people in Australia from these sophisticated scammers, who try to impersonate legitimate financial institutions and advertisers,” said Will Easton, Meta’s managing director for Australia and New Zealand.
This development follows Meta’s October crackdown on 8,000 so-called “celeb bait” ads, fraudulent schemes using the images of prominent Australians to lure unsuspecting consumers into bogus investment schemes.
The Australian government has recently intensified its regulatory oversight of tech giants. Although plans to fine platforms up to 5 per cent of their global revenue for failing to curb misinformation were dropped, the government continues to push for tighter competition and consumer protection measures.
Assistant Treasurer Stephen Jones reportedly plans to propose new digital competition powers aimed at addressing anti-competitive behaviors among tech giants. These include platforms unfairly favouring their own products, bundling services, or preventing consumers from switching to better alternatives.
“This framework will lead to more choice, lower prices, and fairer outcomes for consumers,” Jones said. “And it will level the playing field for small businesses and give them a chance to compete with good, innovative ideas.”
The Australian Competition and Consumer Commission (ACCC) will oversee compliance, with potential penalties reaching $50 million or 30% of a company’s turnover for breaches.
The new financial advertiser verification requirements are set to fully roll out by February, with hopes of curbing scams and restoring trust in online advertising.”
