Exclusive: Meta vowed to stop illegal financial ads in Britain. It failed 1,000 times in a week

Core Viewpoint - Meta has repeatedly failed to stop illegal ads for high-risk financial products on its platforms in Britain, despite its commitment to block them, as revealed by the Financial Conduct Authority (FCA) [2][3][4]. Group 1: Findings from the FCA Review - The FCA found that 1,052 illegal ads for currency trading and complex financial instruments were posted on Meta's platforms in one week, with 56% of these ads coming from previously flagged unauthorized advertisers [3][6]. - The review highlighted that a small number of repeat offenders were responsible for the majority of illegal ads, indicating a lack of effective monitoring by Meta [6][7]. - The FCA's review was limited to high-risk financial products, specifically foreign exchange trading and contracts for difference (CFDs), which are known to pose significant risks to consumers [15][16]. Group 2: Meta's Response and Regulatory Context - Meta claims to fight fraud aggressively and takes swift action on reports, but the FCA has not observed a material difference in Meta's approach despite ongoing engagement [5][7][9]. - The Online Safety Act in Britain, which will allow regulators to fine social media companies for running illegal content, is set to come into effect in March 2025, but provisions for scam ads have been delayed until at least 2027 [10][11]. - Meta made a voluntary commitment in 2022 to only allow FCA-authorized firms to run financial services ads, but the FCA lacks the authority to take action against Meta itself [11][12]. Group 3: Broader Implications and Industry Concerns - A report by Reset Tech found that 51.1% of ads referencing major British banks were likely scams, estimating that Meta could host approximately 29,068 scam ads annually, leading to significant consumer exposure [22][23]. - Banks like Barclays and Revolut have expressed concerns about Meta's effectiveness in combating fraud, urging the company to improve its verification systems [25]. - The FCA has been proactive in issuing alerts and taking action against unauthorized advertisers, but many of these advertisers operate outside of Britain [12][13].