One-fifth of all Australian money lost to scams is fleeced via social media platforms and the government says well-resourced tech giants can do more to protect users.
Nearly 3800 people reported $15.9 million in losses to scammers that started on social media platforms or online forums, according to the National Anti-Scam Centre's second quarterly update since its inception.
Australians aged over 65 were the most likely to fall victim to social media scams, which typically involve fraudsters using data from the platforms to strategically target people with sham ads.
While the quarterly report recorded progress on social media-originating scam losses from the previous period, money lost this way had soared 249 per cent since 2020.
Losses to social media scams reached $95 million in 2023 with WhatsApp accounting for 47 per cent of the losses, Facebook 20 per cent, online dating sites nine per cent, and Instagram another nine per cent.
Speaking at the Global Fraud Summit in London, Australia's Financial Services Minister Stephen Jones said the social licence of these digital firms was at risk.
The minister singled out Meta, the parent company of Facebook, Instagram and WhatsApp, as "the elephant in the room".
"Here's a message to Meta, in particular, which is responsible for about 80 per cent of the losses: you're not above the law."
The federal government has been consulting with social media players and other companies on mandatory industry codes that would require digital platforms, banks and telcos to curb scam risk or face penalties.
Mr Jones said he was "disappointed" in Meta's response to consultations.
"These guys are the biggest technologists in the world, they employ the best information technologists, the best engineers, the best process experts in the world, they are the biggest and the best.
"Don't tell me they can't do more."
At the global summit, world leaders recognised the role of social media companies in allowing scams to spread and the need for industry more broadly to ramp up anti-fraud measures.
Consumer group Choice policy adviser Alex Soderlund said urgent action was needed given big tech companies "have a perverse incentive not to act on scams because they generate advertising revenue".
"So it's clear that only strong mandatory rules to prevent scams developed and enforced by a regulator will result in any meaningful change for consumers," Ms Soderlund said.
The consumer group is one of 20 internationally to sign a statement calling on social media and other tech companies to better protect people from scams, via concrete measures like enhancing account verification and better monitoring, or face repercussions.
