Meta is introducing a new verification system for financial advertisers on Facebook and Instagram to help reduce the spread of scams involving fake celebrity endorsements. Starting in February 2024, any advertisers promoting financial services on Meta’s platforms must authenticate their identity and provide clear credentials. This initiative aims to create transparency and protect users from deceptive practices.
Under this policy, businesses must provide their Australian financial services license number or declare an exemption, while individuals must submit a government-issued ID. The Australian Securities and Investments Commission (ASIC) will validate these license numbers to ensure they are legitimate.
Who Will Be Affected by the New Policy?
This new requirement applies to advertisers worldwide who are targeting Australian users and covers a wide range of financial products, including insurance, loans, mortgages, credit cards, and investment opportunities. To confirm their legitimacy, businesses will need to upload supporting documents, such as business registrations, and verify their connection to the company with work emails.
Once verified, all financial ads will feature a “Paid for By” disclaimer, letting users know exactly who is behind the advertisement. These ads will also be accessible in the Meta Ad Library, providing users with greater transparency during their active period.
Meta plans to enforce these new guidelines starting in February, with the full implementation expected to take approximately six weeks. This is similar to the way political ads are handled on Facebook, requiring clear disclaimers about who is funding the ads and who benefits from them.
Addressing the Rise of Financial Scams
Meta’s Managing Director for Australia and New Zealand, Will Easton, highlighted the importance of this new verification process in protecting Australian consumers. “The introduction of financial advertiser verification is a crucial step towards shielding people in Australia from scammers who attempt to impersonate legitimate financial institutions,” Easton said.
This is part of Meta’s broader efforts to address the increasing problem of financial scams online. As part of these efforts, Meta has also started testing facial recognition technology to help identify deepfake celebrity endorsements, which have become a common tool for scammers.
Meta has faced growing pressure from lawmakers and regulators to tackle scams that misuse deepfake technology to impersonate celebrities in ads promoting fake investments. Public figures like Martin Lewis, David Koch, and Gina Rinehart have had their images stolen by scammers to promote fraudulent schemes offering high returns.
Scam Losses Continue to Rise in Australia
The financial impact of these scams has been significant. According to the National Anti-Scam Centre, Australians lost $135 million to investment scams in 2024, with $35 million of that amount coming from scams on social media platforms.
Meta has also faced lawsuits related to scams. Mining magnate Andrew Forrest has taken legal action against the company for failing to prevent the use of his image in fraudulent ads. The Australian Competition and Consumer Commission (ACCC) has also sued Meta over its handling of these scams.
Upcoming Legislation to Strengthen Scam Prevention
Meta’s new verification system precedes the Australian government’s proposed legislation aimed at preventing scams, which is currently under review in parliament. This new law will require digital platforms to verify advertisers, ensuring that only legitimate businesses can promote financial services online.
Assistant Treasurer Stephen Jones has criticized social media companies for their lack of action in curbing scams. In a recent speech, Jones stated that it was a major issue that platforms were allowing scammers to use their networks to target vulnerable users.
