Meta has announced the removal of approximately 8,000 "celeb bait" scam advertisements from Facebook and Instagram as part of a collaborative initiative with Australian banks aimed at reducing this fraudulent activity.

These scams typically utilize images of well-known personalities, often created through artificial intelligence, to deceive consumers into investing in fictitious schemes.

The social media giant reported that the removal of these scam ads followed 102 reports received since April from the Australian Financial Crimes Exchange, an intelligence-sharing organization established by the country's major banks.

While such scams are a worldwide concern, Meta faces increased scrutiny in Australia, where Prime Minister Anthony Albanese's government is set to introduce anti-scam legislation by year-end.

The proposed bill includes fines of A$50 million ($34 million) for social media, financial, and telecommunications companies that do not fulfill their responsibilities in combating these scams. A public consultation period is scheduled to close on October 4.

Reports of scams in Australia surged by nearly 20% in 2023, with total losses reaching A$2.7 billion, as reported by the Australian Competition and Consumer Commission.

In a lawsuit filed in 2022, the commission accused Meta of not adequately preventing the spread of cryptocurrency advertisements featuring celebrities such as Mel Gibson, Russell Crowe, and Nicole Kidman, estimating that 58% of cryptocurrency ads on Facebook could be scams.

Meta is currently contesting this lawsuit, which has yet to proceed to hearings.

Additionally, the company is defending itself against a separate civil lawsuit in California initiated by Australian mining magnate Andrew Forrest, who claims that Meta has facilitated the posting of numerous fraudulent cryptocurrency ads on Facebook that feature his likeness. Forrest asserts that Australians continue to suffer financial losses from these scams, which he began alerting Meta about in 2019.

David Agranovich, the director of threat disruption at Meta, stated during a media briefing that the collaboration with Australian banks is still in its initial phases. 

He expressed optimism, noting that even a limited number of high-value signals can significantly aid in detecting broader fraud and scam activities, particularly through indicators found in advertisements that may suggest inauthentic content.

When questioned about Meta's stance on the proposed anti-scam code in Australia, Agranovich mentioned that the company is currently reviewing the draft legislation. "I anticipate we will have more specific information to share on that front in the future," he remarked.

Rhonda Luo, who leads strategy and engagement at the Australian Financial Crimes Exchange, emphasized the importance of industry initiatives in proactively addressing scams, rather than merely waiting for regulatory measures to take effect.