With over 50% of scams originating on social media platforms, the issue of trust and accountability has taken centre stage in Australia’s ongoing debate about scam prevention. Amid growing criticism from Australian banks, social media giant Meta has defended its role and outlined steps it is taking to combat scams.
Australia’s major banks, including Commonwealth Bank (CBA) and Westpac, have called on Meta to take greater responsibility for its role in enabling scams, presenting damning evidence to a parliamentary inquiry into the federal government’s proposed anti-scam laws. The banks allege that despite reporting fraudulent activity on Facebook numerous times, scams continue to thrive on the platform.
Meta claps back
In response, a Meta spokesperson told Mediaweek: “Scams are often driven by sophisticated, well-resourced cybercriminals. Meta doesn’t want scams on its platforms, and we continue to invest in teams and technology to detect and stop them. In the second half of 2024, we announced that we will be testing facial recognition technology to identify and stop celeb-bait scams, the expansion of our partnership with the Australian Financial Crimes Exchange (AFCX) to share intelligence with Australian banks on scams, and verification requirements for advertisers wanting to promote financial products or services to Australians.
The safety of our users is of utmost importance, and it makes no sense to allow scams that create a poor user experience on our platforms. We will continue to invest in new ways to stop scammers and deepen our collaborative efforts with numerous industry partners, the government, and law enforcement on this important issue.”
Meta’s statement follows criticism from Westpac and CBA, which have accused the company of failing to remove fraudulent pages and posts despite repeated reports. One example highlighted by Westpac involved an investment scam page flagged in October that remained live months later. Both banks also presented evidence of Facebook pages offering to “buy or sell bank accounts” for illegal money-muling purposes.
Carolyn McCann, Westpac’s customer and corporate services group executive, expressed frustration with Meta’s perceived lack of action. Speaking to The Sydney Morning Herald, she said, “It’s extraordinary that foreign tech companies are trying to claim they have no role to play. More than 50 per cent of scams start on these platforms. Banks are doing their bit, telcos are doing their bit. Why should social media giants be any different?”
The proposed legislation, known as the Scams Prevention Framework Bill, seeks to introduce fines of up to $50 million for banks, telcos, and social media companies that fail to take sufficient action to prevent scams. However, the tech industry lobby group DIGI has argued that banks should bear full responsibility for reimbursing victims, who collectively lose billions of dollars each year.
Who should take responsibility? Banks, telcos, or social media?
The inquiry, which is hearing submissions from groups including the Australian Banking Association (ABA), DIGI, and consumer advocacy group Choice, is also exploring how to allocate responsibility for scams among banks, telcos, and digital platforms.
ABA CEO Anna Bligh has called for urgent action from social media companies, saying, “Enough is enough. If digital platforms are serious about protecting Australians, they should be doing more to ensure people aren’t being exposed to scams in the first place.” She added that while banks and telcos are heavily investing in fraud prevention, platforms like Facebook are falling short. “Meta’s world-leading technology allows for hyper-targeted advertising, yet it refuses to apply the same rigour to identify and remove scams,” Bligh said.
In 2024, the National Anti-Scam Centre, run by the ACCC, reported almost 250,000 scams, costing Australians $3.2 billion. While email, text messages, and phone calls were the most common methods, social media played a significant role in enabling scams.
With the parliamentary committee expected to hand down its report on the proposed anti-scam laws next week, the debate is intensifying. As the Albanese government pushes for an economy-wide approach to scam prevention, the outcome of this inquiry could fundamentally reshape the responsibilities of digital platforms in Australia.
The cost of scams
In 2024 alone, the National Anti-Scam Centre, run by the ACCC, reported almost 250,000 scams, costing Australians $3.2 billion. Email, text messages, and phone calls were the top contact methods, but social media played a significant role in enabling these schemes.
While tech giants maintain they are not as central to scams as banks or telcos, the banks argue that platforms like Facebook are integral to the ecosystem of fraud. The Albanese government’s reforms aim to create an economy-wide approach to tackling the issue, placing proportional liability on all industries involved.
The parliamentary committee is expected to hand down its report on the proposed anti-scam laws next week. As the debate continues, the pressure is mounting on Meta and other tech companies to step up and play an active role in preventing scams. With billions of dollars and consumer trust at stake, the outcome of the inquiry could reshape the responsibilities of digital platforms in Australia.