Facebook Faces Lawsuit Over Crypto Scam Ads From Australian Mining Billionaire Andrew Forrest

Facebook was alleged to be criminally reckless by not taking sufficient steps to stop criminals from using its platform to send scam advertisements.

By Reuters | Updated: 3 February 2022 11:49 IST

Facebook Faces Lawsuit Over Crypto Scam Ads From Australian Mining Billionaire Andrew Forrest

Andrew Forrest is Australia's richest man and chairman of Fortescue Metals Group

Highlights

Forrest’s lawsuit alleges Facebook was criminally reckless
It comes after Forrest said he made several requests to Facebook
In September, Forrest filed a separate civil case against Facebook

Iron ore magnate Andrew Forrest said on Thursday he is launching criminal proceedings against Meta's Facebook in an Australian court, alleging that it breached anti-money laundering laws and its platform is used to scam Australians.

Forrest, Australia's richest man and chairman of Fortescue Metals Group, said he was taking the action to stop people losing money to clickbait advertising scams, such as ones using his image to promote cryptocurrency schemes.

The lawsuit filed by Forrest in the Magistrates Court of Western Australia alleges Facebook "failed to create controls or a corporate culture to prevent its systems being used to commit crime."

[Sponsored] Samsung Galaxy S24: The Ultimate Camera Phone With Smarter On-Device AI

It also alleges Facebook was criminally reckless by not taking sufficient steps to stop criminals from using its social media platform to send scam advertisements to defraud Australian users.

The lawsuit comes after Forrest said he made several requests asking Facebook to prevent his image from being used to promote investment plans, including in an open letter to Chief Executive Mark Zuckerberg in November 2019.

Facebook, which changed its name to Meta last year, declined to comment on the lawsuit but said that in general it has always taken a "multifaceted approach" to stop such ads appearing and had blocked advertisers.

Meta in Focus After Strong Report by Alphabet Boosts Confidence

"We're committed to keeping these people off our platform," a spokesperson for Meta said in an emailed statement.

Some advertisements, which have used Forrest's image and claimed to promote cryptocurrency investment schemes, have appeared on Facebook since March 2019, the lawsuit said.

"This action is being taken on behalf of those everyday Australians – Mums and Dads, Grans and Grandads – who work all their lives to gather their savings and to ensure those savings aren't swindled away by scammers," Forrest said in a statement.

India Said to Seek Tougher Action From US Tech Giants on Fake News

Under Australian law, a private prosecution of a foreign corporation for alleged offences under the Commonwealth Criminal Code requires the consent of the country's attorney general.

"The Attorney-General has given her consent to the private prosecution against Facebook in relation to alleged offences under subsection 400.7(2) of the Criminal Code," said Steven Lewis, principal of Mark O'Brien Legal, which will represent Forrest in the case.

The office of Attorney General Michaelia Cash did not immediately respond to a request seeking comment.

If Facebook is found guilty, it will face a maximum penalty of AUD 126,000 (roughly Rs. 67.12 lakh) on each of three charges, Lewis said.

An initial hearing has been set for March 28, Forrest said.

In September last year, Forrest filed a separate civil case against Facebook in the Superior Court of California, County of San Mateo.

Facebook has been under pressure in Australia after disagreeing initially with a new law that required it and Google to pay for links to media companies' content.

Interested in cryptocurrency? We discuss all things crypto with WazirX CEO Nischal Shetty and WeekendInvesting founder Alok Jain on Orbital, the Gadgets 360 podcast. Orbital is available on Apple Podcasts, Google Podcasts, Spotify, Amazon Music and wherever you get your podcasts.

Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.

Affiliate links may be automatically generated - see our ethics statement for details.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.