On July 4, the Ministry of Digital Affairs and Meta Platforms Inc, met to discuss anti-fraud measures. Meta said it would support anti-fraud campaigns and commit to preventing fraud on its online advertising platform. They also pledged to establish communication channels with the ministry and prioritize removing high-risk fraudulent accounts and advertisements. After several years of the government running around in circles, President William Lai’s (賴清德) administration, in its second month, has gotten Meta to sit down and address the negative effects of online fraud on Taiwanese. This is not an easy feat and deserves some praise.
However, after the pledge was released, many fraudulent ads were promoted on the platform. A common scam on Facebook is someone impersonating Taiwan Research Institute (TRI, 台灣綜合研究院) founder Liu Tai-ying (劉泰英) to advertise books on investment tips. Another page posted an even more outrageous photo of Lai and former president Tsai Ing-wen (蔡英文) promoting fur seal pills.
Although the ministry has already launched a dedicated anti-fraud reporting channel for public figures, these absurd fraudulent ads create a “broken window” effect. It plans to launch an anti-fraud reporting and inquiry platform next month, which would instantly direct reported suspicious messages to the appropriate government agencies. It seems impressive, but it is still a “passive” method of reporting and checking cases. Ultimately, many important administrative tasks would fall on public servants who already have their hands full.
The reason why algorithms continue to promote fraudulent ads is simple: “Money talks.” Platform operators receive compensation to carry out promotional activities. Curbing these occurrences requires getting to the root of the problem. To effectively manage fraudulent ads, platforms that receive compensation for promoting them must be regulated in accordance with the law.
The Executive Yuan in May passed draft bills for fraud prevention, and science and technology investigation, as well as draft amendments to the Communication Security and Surveillance Act (通訊保障及監察法) and Money Laundering Control Act (洗錢防制法). The drafts have been submitted to the Legislative Yuan.
After the turmoil in the legislature since May, it is hoped that the Legislative Yuan can complete their review as soon as possible, providing law enforcement with more effective legal tools to combat online fraud and create a healthier, more reliable digital environment.
Lo Cheng-chung is a professor and director of Southern Taiwan University of Science and Technology’s Institute of Financial and Economic Law.
Translated by Nicole Wong
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