It can no longer be denied that artificial intelligence (AI) and machine learning (ML) technology are highly potent tools that can be deployed to easily flag and remove scam ads and fake news; yet, why aren't they doing much about it?
Is it not a cruel irony that millions of users remain hooked to social media platforms despite being bombarded with fake news and scam ads daily - while more and more are being mercilessly robbed of their hard-earned savings by scammers operating on those same platforms?
In fact, only last week it was reported that a 36-year-old insurance agent in Johor became the latest to fall victim to a social media investment scam after transferring more than RM370,000 into multiple bank accounts in a fraudulent scheme promoted on Facebook.
Have social media giants become covert "business partners" with online criminals?
Unsurprisingly, the Malaysian Communications and Multimedia Commission (MCMC) had recently announced that it will be summoning Meta to explain a Reuters report alleging that the tech titan had projected to earn about 10% of its annual global revenue, with around US$16 billion coming from ads linked to scams and banned goods,
The report also mentioned that Meta's failure to stop such ads had exposed billions of its Facebook, Instagram and WhatsApp users to fraudulent e-commerce and investment schemes, illegal online casinos and banned medical products!
As expected though, the US-based giant has denied the allegations saying that the report may have presented a “selective view”; nevertheless, MCMC commissioner Derek Fernandez was quoted to have said that the commission will be initiating an investigation into the matter soon, as it is deemed to be very serious and disturbing.
Isn't "stricter regulation" a necessity now in order to protect the nation, and its citizens, from losing millions of ringgit to scammers?
He had reportedly stated that to combat “scams” and illegal gambling, the most effective method would be for social media platforms to be “licensed”; moreover, according to him, they will also be required to be accountable for the measures they have put in place to curb such contents as well as identify criminals operating on their platforms.
But, again, the big question is: will the tech and social media giants actually bother to comply – or will they instead hold the government to ransom by threatening to shut down operations in the country?
Do social media platforms really undertake robust vetting of contents, and do they really censure those found to be manipulating it?
Meanwhile, another feature that has become integral to the social media phenomenon is of course “influencer” advertising; as local academic Ong Tze Chin put it aptly, it has become powerful because it merges the personal touch of social connection with the persuasive force of marketing, allowing brands to reach audiences in authentic and engaging ways.
However, he had warned that the rise of influencer marketing has also blurred the line between personal recommendation and paid promotion, raising concerns about transparency, ethics and consumer manipulation.
Incidentally, the country's Consumer Protection Act 1999 (CPA) does offer protection to consumers against misleading or deceptive conduct, false representation and unfair practices by vendors and promoters; but the truth is, there is a lack of clear regulations “specifically” governing social media influencers and online platforms; this is allegedly made worse by inadequate oversight and enforcement by the authorities including the domestic trade and cost of living ministry.
Shockingly, despite thousands of complaints received since 2022, it was reported that no one has been convicted for acts involving misleading ads! But why have the authorities been shying away from taking firm action?
Was it any surprise then that even AirAsia founder Tony Fernandes had last October decided to close his social media accounts on Meta after expressing disappointment with the “constant fake news”; in fact, he has reportedly said that he had already closed his Threads account, and will soon close his Facebook and Instagram accounts!
Fernandes: Meta can stop the scams … with the huge amount of technology they have. (But why aren't they doing it?)
In reality, stricter regulation of social media platforms will definitely help to filter and reduce the damage caused by scammers and fake influencer marketing; however, it may also put many in this country in a catch-22 situation as they will no longer be able to enjoy a flexible and cost-friendly model to operate their business.
Perhaps, one viable option will be to combine stricter regulation with the imposition of heavy fines on the platforms each time a scam or a deceptive advert is flagged; undoubtedly, oversight bodies such as MCMC and the relevant ministries have to be more firm with the social media “monsters” – no more just a slap on the wrist but to hit them where it hurts most!
Finally, isn't it also high time the Consumer Protection Act 1999 is further strengthened taking into account current realities – and enforced more vigorously? The truth is, until and unless that is done, is there any guarantee that social media platforms will refrain from "closing an eye" to online criminals and rogue influencers - while raking in billions in easy money annually?
Main information source: Vibes, Focus Malaysia and FMT.
JK Joseph (jtkingsworld@gmail.com) is a content creator under the Newswav Creator programme, where you get to express yourself, be a citizen journalist, and at the same time monetize your content & reach millions of users on Newswav. Log in to creator.newswav.com and become a Newswav Creator now!
The User Content (as defined on Newswav Terms of Use) above including the views expressed and media (pictures, videos, citations etc) were submitted & posted by the author. Newswav is solely an aggregation platform that hosts the User Content. If you have any questions about the content, copyright or other issues of the work, please contact creator@newswav.com.