Westpac, one of New Zealand’s largest banks, is urging social media giant Meta—owner of Facebook and Instagram—to enhance protections for users against online fraud and scams. This call to action comes amid concerns over an AI-generated deepfake image that has been circulating online, depicting Westpac CEO Catherine McGrath in a fabricated confrontation with NZ First leader Winston Peters.
Earlier this month, the Financial Markets Authority (FMA) issued a warning regarding the rise of scammers using deepfake technology in an attempt to mislead consumers into investing in fake trading platforms. McGrath recounted her unsettling experience when she received numerous alerts about the deepfake, which misleadingly portrayed her as angry. “If you knew me, you knew that would never happen. If you didn’t know me, though, it’s easy clickbait,” she said during an interview on Morning Report.
McGrath elaborated that the deepfake had linked to an investment scam that could potentially harm many New Zealanders. “What we want to see is more from Meta to protect New Zealanders from scams,” she emphasized. The urgency of this issue is underscored by a notable incident in 2024 when a Taranaki grandmother lost $224,000 after being misled by a deepfake video of Christopher Luxon on Facebook, promoting cryptocurrency investments targeted at superannuitants.
In another alarming case, a pharmacist found herself featured in Facebook ads hawking counterfeit weight-loss medications. Reports indicate that while some fraudulent advertisements are taken down after being flagged to Meta, they reappear with slight modifications shortly thereafter. “What we’d really like them to do is to verify that when they’re taking money from advertisers for financial services, they need to actually confirm that it’s a financial services firm that they’re taking the advertising revenue from,” McGrath said.
Despite Westpac’s efforts to notify Meta through four separate channels, they received no response regarding the scam advertisement. McGrath noted that the fraudulent content was ultimately removed, likely due to the involvement of the FMA, but the lack of communication from Meta left her uncertain. “When I get emails from customers, they tend to go to the top of my list—so not having any confirmation that says ‘we’ve actually taken action’ I think is unhelpful,” she said, expressing frustration at the silence from Meta.
McGrath suggested establishing a direct communication line between banks’ financial crime teams and Meta to expedite the reporting and removal of scams. “Their own reports talk about how much money they make. I think it’s a lot easier for them to verify that when they’re taking money from an advertiser they actually do sell the services that they provide, than it is for me to identify that when you’re making a payment that you genuinely think is to the right person that you want to make,” she stated.
The ongoing challenges posed by digital fraud are becoming increasingly prominent in the discussion surrounding social media platforms and their responsibilities. As technology continues to evolve, the potential for misuse, particularly through tools like deepfake technology, raises significant concerns for consumer safety. McGrath concluded by reiterating the need for Meta to “step up and do more” to ensure that New Zealanders are protected from scams that can have devastating impacts on their financial well-being.
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