LONDON/SAN FRANCISCO - Meta failed to block more than 1,000 illegal financial ads on its platforms in Britain during a single week last November, despite a 2022 commitment to prohibit such content.
The UK’s Financial Conduct Authority (FCA) discovered 1,052 unauthorised ads promoting high-risk products like foreign exchange trading and contracts for difference (CFDs). Over half came from advertisers the FCA had already flagged to Meta.
Meta’s platforms-Facebook, Instagram, and WhatsApp-carry a disproportionate share of suspicious financial ads, according to an FCA insider. The regulator repeated its review in December and again found repeat offenders dominated the violations.
Despite regular engagement with Meta, the FCA has seen no material improvement in the company’s enforcement. Meta claims it acts swiftly on scam reports and requires UK financial advertisers to be FCA-authorised.
Britain’s Online Safety Act, set to empower regulators to fine platforms up to 10% of global revenue for hosting illegal paid content, won’t cover scam ads until at least 2027. Until then, enforcement remains limited.
In a Reuters test, a fake investment ad offering 10% weekly returns was approved in Britain but blocked in Australia-where stricter verification rules apply and fines reach $35 million.
Consumer advocate Martin Lewis called the issue “a financial problem, not a tech one,” urging Meta to invest more in prevention. Digital rights group Reset Tech estimated Meta hosts nearly 30,000 scam ads annually referencing major UK banks, generating over 53 million exposures in Britain and the EU.
Banks including Barclays and Revolut say Meta is the top source of authorised push payment fraud. Revolut demanded urgent improvements to Meta’s verification systems.