Written by staff writer.
Consumer advocacy group CHOICE has joined a global alliance to more effectively lobby governments to force tech companies to do more to protect users from scams. CHOICE says its research found that almost 90% of Australians believe that tech platforms that fail to detect or prevent scammers from operating on their sites should face stiff penalties.
The alliance of 20 consumer groups from 19 countries is working through Consumers International. “Tech giants such as Facebook, Instagram and Google are failing to prevent scammers from using their platforms to target victims, causing enormous amounts of harm to consumers globally,” said Alex Soderlund, CHOICE’s Senior Campaigns and Policy Adviser. “These tech companies have the resources and technology to do more to protect everyone from scammers, but they won’t implement effective protections until the law requires it.”
Social media platforms such as Facebook have recently come under fire from several high-profile Australians, including Andrew Forrest, Dick Smith, David Kock, and Gina Rinehart, whose altered images and names have been used on social media platforms by scammers. In one recent case, Facebook’s parent company, Meta Platforms, was paid AUD7,000 by scammers to promote a fake news story to 100,000 people in which a digitally altered version of the Australian Treasurer spruiks a fraudulent investment scheme. Meta only removed the video after media outlets made inquiries.
CHOICE says losses from social media scams in Australia have reached over AUD66 million this calendar year, a 40% increase compared to 2022. The consumer group’s research reveals that 88% of Australians believe platforms like Facebook won’t adequately protect users from scams unless legally required to do so. Most Australians also think social media platforms don’t do enough to protect users from scams.
“Our research shows that an overwhelming majority of people would like to see the Australian government require digital platforms to protect people from online scams,” said Soderlund. “We’re looking forward to engaging with the Australian Government’s recently announced consultation to make sure there are strong rules backed by significant penalties in Australia.”
Meta says scammers are a problem across the entire internet, not just social media platforms. It says it actively searches for and identifies “inauthentic behaviour” on its platforms and disables accounts if necessary. However, critics say Meta focuses too much on shutting down new problematic accounts and is less effective in shutting down problematic content on established accounts.
“Meta is constantly tackling scams through a combination of technology, such as new machine learning techniques and specially trained reviewers, to identify content and accounts that violate our policies,” a Meta spokesperson told MySecurityMedia. “We are currently also working across industries and with the government to identify new ways to stop scammers.”
Globally, losses to online scams amount to USD1.026 trillion, equivalent to 1.05% of the global GDP, according to recent Global Anti-Scam Alliance research. “The rise in scams is a global problem, causing consumers immense financial, emotional and psychological harm,” a joint statement issued by the 20 signatories to the new global alliance said this week. “Governments should require platforms to take effective action in the prevention, disruption and detection of scams, which should be continually improved.”
The current Australian Government has promised to crack down on online scammers. However, it is yet to legislate any punitive penalties against platforms or force them to do more to prevent scammers from proliferating and remaining on sites. However, it has announced a consultation period with stakeholders ahead of possible legislative reform.
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