Facebook faces Lawsuit as Crypto Scams “Run Rampant” on its Website

Australia’s most wealthy man, Andrew Forrest, has filed criminal charges against Meta for allowing crypto scam ads that display his name and age.

Currently, the Australian Competition & Consumer Commission (ACCC) is taking legal action against Meta due to the company’s inability to limit the spread of similar posts on Facebook.

Facebook is known as one of the most used websites for crypto scammers as they use the network to promote get-rich-quick schemes. A common tactic for these scammers is to attach the image and name of public figures to their advertisements, even if these individuals are not connected to crypto.

According to the consumer protection watchdog, these ads have misled users who believed these were promotions supported by famous figures. Additionally, the watchdog has stated that Facebook “aided and abetted or was knowingly concerned in false or misleading conduct and representations by the advertisers.”

ACCC has filed its suit in a federal court and will likely use the ads that display Forrest and other celebrities as evidence against Meta. While cases such as these would normally be handled by the Australian Securities and Investments Commission (ASIC), the ACCC is filing the case due to its consumer protection elements.

According to famed crypto detective, Zachxbt, Facebook has allowed crypto “scams to run rampant.”

While Facebook is on the hot seat, in this case, crypto scams have been reportedly present in almost every social media site as Twitter, Youtube, and Instagram users have also reported this issue.

As per the Federal Trade Commission (FTC), crypto scams on social media have cost investors over $700 million in 2021.

Source: CryptoSlate