Illustration: Cinemato
Social media giant Meta is implementing stricter verification protocols for financial product advertisers in Australia, designed to combat the growing threat of investment fraud. Starting in February 2025, the company will enforce enhanced screening measures across Facebook and Instagram to protect users from potentially deceptive financial advertisements.
Businesses must provide their Australian Financial Services Licence (AFSL) number or claim an exemption, while individuals must submit government-issued clarification. The Australian Securities and Investments Commission (ASIC) will authenticate licence numbers to ensure compliance.
Additionally, businesses must verify their identity by uploading official documents and proving their connection to the entity through work-related email addresses. These measures resemble Meta’s verification process for political ads, which mandate disclaimers revealing the ad sponsor’s identity.
As per Meta, the rollout will be gradual, with enforcement expected to be completed within six weeks, reports The Guardian.
Meta’s decision follows mounting pressure from Australian regulators and politicians to address the rise in scams exploiting public trust. Fraudsters frequently use deepfake technology to feature prominent figures such as Martin Lewis, Gina Rinehart, and Anthony Albanese in fake endorsements for bogus investment opportunities.
Meta has previously implemented similar verification rules in the UK and Taiwan. The timing of this Australian rollout aligns with the federal government’s impending scam prevention framework legislation, which is currently under parliamentary review and expected to report back in January.
In addition to the verification measures, Meta recently began trailing facial recognition technology in ads to identify fake celebrity endorsements. This innovation complements existing detection methods and highlights the platform’s adaptive approach to emerging threats.
While these measures are expected to deter scammers, challenges remain. Expert warns that fraudsters will likely evolve their tactics to evade detection. However, the new requirements aim to make fraudulent operations more difficult and costly, reducing their prevalence on Meta’s platforms.
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