Scam ads of ‘closed’ businesses are circulating on Facebook

Photograph: 123RF

Facebook users are being warned to watch out for ads designed to cash in on New Zealand’s economic woes.

Netsafe CEO Brent Carey said dodgy Facebook ads had been a long-standing problem and the new versions, for example claiming businesses had closed due to conditions in various parts of the country, were the latest.

Often these businesses, if any, were not based in New Zealand.

Multiple businesses with different names claiming to be based in Wellington were advertising with the same text; This text included the claim that the owners “sacrificed dreams and comfort” to keep the business going, but that “the economic demands of modern times are beyond our strength.” .

Carey said it’s common for scam ads to say a business is closing or offer a deep discount.

“There seems to be more of these around because of the cost of living crises.”

He said the ads’ “coverage” claims were designed to encourage people to act quickly.

He said people are now more wary of scammers, but they are also becoming more professional.

“The cost of production is lower now. Technology helps them look more legitimate with speed and pace.”

He said people shouldn’t think there’s security in a paid-for ad.

People can report dangerous ads to Facebook and ask for them to be “deplatformed.” He also said they could contact Netsafe for assistance in removing the content.

But he said Facebook could do more. It can make better use of its algorithm and do more scanning to prevent dangerous ads from appearing in the first place. He said it could also make the reporting process simpler and give people feedback after they complain about an ad.

People should also check details of businesses they are considering purchasing from, including clear contact details and what the returns process is. They also need to check whether the domain name is legitimate.

Facebook owner Meta did not respond to a request for comment.