FMA warning sparks renewed call for action
Westpac NZ is ramping up pressure on Meta to do more to stop fraudsters using Facebook and Instagram to push fake investment schemes at New Zealanders.
Earlier this month, the Financial Markets Authority (FMA) warned of a spike in scammers using deepfake news articles and AI-generated images to funnel consumers on to bogus trading platforms. One fake article, linked from Meta platforms, used fabricated images of Westpac NZ CEO Catherine McGrath (pictured) in a supposed clash with NZ First leader Winston Peters, while Kiwibank CEO Steve Jurkovich’s image has also been misused.
McGrath said Westpac reported the scam ad but saw little response.
“Even after we reported the scam ad to Meta, different versions of it continued to pop up in Facebook feeds for weeks. Meta is not responding quickly or seriously enough to this sort of harmful content and it’s putting New Zealanders’ money at risk,” she said in a media release.
Social media now dominates scam origins
McGrath said scams originating on platforms like Facebook and Instagram are now the dominant threat.
“64% of all scam cases we’ve handled so far this year have originated on social media, up from 57% at the same time last year,” she said, noting that some customers are still reluctant to admit where they were first targeted.
Across the wider market, the impact has already been severe. In 2024, a Taranaki grandmother lost $224,000 to scammers after being duped by an AI-generated deepfake video of Christopher Luxon on Facebook encouraging superannuitants to invest in cryptocurrency, RNZ reported.
McGrath said, “Right now, it's much faster and easier for a scammer to publish a fake ad than it is for someone to report it and have it pulled down,” and pointed to Meta’s own documents showing billions in revenue from scam or banned-goods ads.
Sometimes fake ads are taken down after being reported to Meta, only to reappear, slightly altered, the next day.
Banks tighten controls as Meta defends stance
Westpac says banks have invested heavily in fraud detection technology, staff training, and awareness campaigns, contributing to falling scam losses among its customers. By contrast, McGrath argues Meta “continues to make money from scam ads on its platforms” and is “unwilling to do more than the bare minimum”.
“As a member of the anti-scam alliance, Meta’s actions could help take a huge bite out of financial crime in Aotearoa, yet it seems unwilling to do more than the bare minimum,” she said. “It’s long past time for Meta to step up.”
In a statement, Meta told 1News it didn't want scams on its platforms and was “continuing to invest in tools and technology to prevent them”.
“The safety of our users is of utmost importance, and we continue to work with industry, the government and law enforcement to protect New Zealanders from scams,” the spokesperson said.
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