Queensland retiree Gary fell for an investment scam after he saw it on advertised on Facebook. ·Source: Supplied/Getty
Meta has been awarded a Shonky award for “failing to protect Aussies from scams” as social media scam losses hit $95 million. The tech giant was among the recipients of the annual awards, which recognises the “worst of the worst products and services from the past year”.
The 2024 winners also include major health insurer NIB for charging single parents more for health insurance than couples, a $199 stick vacuum the group said “sucks at sucking”, a “green” juice with no vegies, and “grounding socks” that fail to deliver on their promised health benefits.
“As we approach 20 years of the CHOICE Shonky Awards, it’s clear they’re needed now more than ever,” CHOICE chief executive Ashley de Silva said.
“This year’s winners, both big and small, prove that shonky products and business practices are still rife.”
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CHOICE said Meta was a “clear choice” for a Shonky Award this year, with scam losses from social media reaching $95 million in 2023.
Yahoo Finance has spoken to several Aussies who have lost money after falling for scams on Facebook.
Queensland retiree Gary said he lost $110,000 of his life savings after he got sucked into an investment scam that used the image of Gina Rinehart. The ad claimed investors could make huge amounts of money with a small initial investment.
“I started seeing these ads on Facebook and they had photos of people like Gina Rinehart, Twiggy Forrest and Clive Palmer,” Gary told Yahoo Finance.
Gary said he saw them on the platform for “six to eight weeks” and thought they “must be genuine because they would have been taken down”.
Meta has been accused of failing to protect Aussies against scams, with people like Gary falling for investment scams advertised on the platform (right). ·Source: Getty/Supplied
Scams on Facebook, Instagram and WhatsApp account for 76 per cent of all reported social media scam losses and de Silva said Meta hadn’t “stepped up” to the plate.
“When CHOICE reported three suspicious Facebook ads as scams to Meta, one remained live for at least four days,” he said.
“The other two were taken down within 24 hours, but one of these accounts was allowed to quickly re-post an almost identical ad and continue to promote other suspicious ads.”
The government recently introduced legislation that would slap fines of up to $50 million on social media platforms, banks and telco companies if they don’t take reasonable steps to prevent, detect, disrupt, respond and report scams.
Meta would not comment on the Shonky but said it had invested more than $20 billion in teams and technology to enhance safety and security since 2016.
A spokesperson told Yahoo Finance a variety of methods, including machine learning techniques, were used to identify fake accounts and spam content.
It recently began using facial recognition technology to block fake celebrity endorsement scams on Facebook and Instagram.
CHOICE accused health insurer NIB of charging single parents more than couples for health insurance. It called NIB the “worst of a shonky bunch” and accused other insurers of adopting similar practices.
“If you’re a single parent who has Gold Top Hospital cover, with Basic Extras and a $750 excess, your premiums will double if you add your child,” de Silva said.
“If you’re a couple, you’ll only pay about an extra 4 per cent to include your child on the same policy.”
A NIB spokesperson told Yahoo Finance the price difference for the Gold Top Hospital policy reflected the fact that more than two dependents could be covered under a single-parent policy.
“A single parent may have cover for one child, or many children. There’s no limit. A couple is always two people,” the spokesperson said.
“We have single-parent policyholders, in NSW, with six children covered. A policy for a couple will only ever cover two people – a couple.”
The spokesperson noted that claims utilisation and service costs were “by far” the largest contributor to the cost of any policy.
The Acerpure Clean Lite stick vacuum was called the “worst stick vacuum” that CHOICE had ever tested.
de Silva said the $199 vacuum cleaner “really sucks at sucking” and “bombed” its performance test, which measured how it picked up cornflakes, potting mix and flour, scoring just 10 per cent.
CHOICE experts found the vacuum also clogged up quickly and was outperformed by stick vacuums half its price.
The Acerpure Clean Lite stick vacuum and GroundingWell grounding socks were given Shonky awards. ·Source: CHOICE
Daily Juice Co’s “green” juices were named and shamed for their Daily Guide Green Mix and Daily Juice Green Juice Blend with Folate only containing fruit juices, rather than veggies, and relying on added colouring for their green label.
A marketing team spokesperson from Bega Group, who owns Daily Juice Co, told Yahoo Finance the green juice products identified by CHOICE ceased production in September and were no longer in market.
GroundingWell grounding socks, which are $40, also picked up a Shonky award for making “unearthly promises”.
CHOICE alleged the socks did not deliver on any of the promised health benefits, including claims to alleviate pain, reverse the effects of aging, and improve sleep.
CHOICE said it receives hundreds of nominations each year for Shonky products and services from members and staff.
CHOICE looks at nine criteria: failing a standard, poor performance on CHOICE tests, hidden charges, lack of transparency, false claims or broken promises, consumers being worse off, consumer confusion, poor value for money, and consumer frustration or plain outrage.
Yahoo Finance has contacted all award winners for comment.
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