Under the new system, advertisers promoting financial products and services are required to verify their identity and provide their Australian Financial Services Licence (AFSL) number. This verification process aims to confirm the legitimacy of advertisers, offering users greater transparency and trust in the financial advertisements they encounter.
Once verified, advertisements will display a 'Paid for By' disclaimer, including the advertiser's verified information such as their business name and AFSL number. This measure is intended to help users easily identify the source of financial ads and make informed decisions.
Meta's decision comes in response to increasing concerns about the rise of financial scams on social media platforms. According to the Australian Competition and Consumer Commission (ACCC), Australians lost over $135 million to investment scams in the first nine months of 2024, with a significant portion originating from social media.
Will Easton, Managing Director of Meta ANZ, stated, "The introduction of financial advertiser verification is an important additional step towards protecting people in Australia from these sophisticated scammers, who try to impersonate legitimate financial institutions and advertisers."
This initiative is part of Meta's support for the voluntary Australian Online Scams Code introduced in July 2024 by the Digital Industry Group Inc (DIGI). The code aims to establish best practices for digital platforms to detect and prevent scams.
While this move is a positive step towards enhancing online safety, users are still encouraged to exercise caution when engaging with financial advertisements. Verifying the legitimacy of financial offers and consulting with licensed financial advisors before making investment decisions remain crucial practices.
Meta's proactive approach sets a precedent for other social media platforms to implement similar measures, contributing to a safer digital environment for Australian consumers.
