Government “profiting off people’s misery” as social media fraud rises, says O’Callaghan

Social media giants should not be allowed to make money from hosting fraudulent ads, according to Social Democrats TD Cian O’Callaghan.

The Dublin Bay North TD was speaking after research published by the Central Bank of Ireland showed that more than one in three people have been the victims of fraud, and almost two-thirds have lost money as a result.

Online purchase scams made up nearly half (48 per cent) of all fraud taking place in Ireland.

O’Callaghan said “these criminals are paying to have their scams advertised on social media to vulnerable individuals.”

Research carried out by Revolut in February found that social media companies earned an estimated €32 million last year from scam advertisements targeted at Irish people.

“Social media companies are profiting off people’s misery, and the government is doing nothing to stop it,” he said.

“Investment fraud in particular is identified by the Central Bank as leading to victims losing substantial amounts of money that is difficult to recover.

The Soc Dems finance spokesperson noted that in 2024, Department of Finance officials proposed that tech companies would have to vet those who can post financial investment ads.

“This is a no-brainer proposal that should be in place already but has seen zero action from this government,” he said.

“I’m calling on Minister for Finance Simon Harris to explain why he has failed to act on the proposals put forward by his department.”