Israel's Slow Fight Against Financial Scams on Social Media
Translated & summarized from Calcalist by baba
Israeli regulators are facing a significant rise in online financial scams targeting investors, with authorities attempting to pressure Meta into verifying financial advertisers. While countries like the UK and Australia have implemented such measures, Israel's efforts have been slow, with Meta's verification process still not fully rolled out. The scams, potentially originating from China and Russia, utilize AI to create convincing fraudulent content, posing a major challenge for the Israel Securities Authority.
The story in 6 lines · by baba
- Israel's financial regulators are struggling to combat a surge in online financial scams targeting investors.
- The Israel Securities Authority is pushing Meta to verify identity for financial advertisers in Israel.
- Countries like the UK and Australia have already implemented stricter verification for financial advertisers.
- AI is being used to create convincing fake financial advertisements and impersonations.
- Scams may be originating from China and Russia, according to research.
- Regulators face challenges in holding large social media platforms accountable for content.
Israeli regulators are struggling to combat a surge in online financial fraud, which has intensified as more Israelis invest in the capital market. While fraudsters can operate globally, Israeli authorities are seeking to curb their reach by targeting paid advertisements on social media platforms like Meta. The Israel Securities Authority (ISA) proposed that Meta require advertisers of financial services in Israel to undergo identity verification to ensure they are authorized.
However, this effort has progressed slowly, with the ISA facing difficulties in cooperating with Meta. In November of last year, ISA Chairman Spi Zinger noted that the company had not responded to an official letter. Meta's Director of Policy, Yehuda Ben-Yakov, stated at the time that the company was experimenting with advertiser verification in Israel, expecting a solution by the first half of 2026. Despite this, thousands of fraudulent financial ads continued to appear in Israel as of October.
In contrast, countries like the UK and Australia have already implemented verification mechanisms for financial advertisers. Singapore's police ordered Meta in September 2025 to enhance measures against impersonation of government officials, with potential fines of up to S$1 million. The UK, following pressure from its financial regulator, restricted financial service advertising to authorized entities on Meta in 2022. Australia requires financial advertisers to verify their identity and disclose funding sources.
Research from Stark Security suggests that some financial impersonation scams may originate from China and Russia, with perpetrators using artificial intelligence to create convincing videos and manage fake accounts at low cost. The ISA's experience highlights the challenge local regulators face against large platforms that do not consider themselves responsible for the content they host, leaving authorities with limited options such as making operations difficult for Meta's representatives in Israel or pursuing legal action.