Meta has announced that by June 2024, all Facebook advertisers will be required to undergo identity verification to curb e-commerce fraud. Additionally, Facebook Marketplace will continue to implement verification for specific sellers.
This measure is the latest action taken by the Ministry of the Interior following a trial user verification program aimed at social platform e-commerce transactions.
The Ministry of the Interior issued a statement on March 10, stating that a six-month pilot program had been conducted previously for Carousell, Facebook Marketplace, and Facebook ads, involving identity verification for sellers and advertisers.
According to the trial results, the Ministry of the Interior found that from June to December 2024, cases of fraud related to Facebook ads increased by 12%. Therefore, Meta plans to require all advertisers to complete identity verification by June, which the Ministry of the Interior welcomes and commits to continuously monitor the situation.
On the other hand, fraud cases on Facebook Marketplace decreased by 55%, hence there is no need for mandatory verification for all sellers at the moment. However, the Ministry of the Interior noted that a significant portion of fraud cases originated from Facebook pages. Although Facebook pages are not currently included in the mandatory verification scope, the Ministry is working with Meta to gradually introduce verification requirements by 2025 and assess their effectiveness.
As for Carousell, during the trial period, e-commerce fraud cases decreased by about 11%. Although the reduction is not significant, the Ministry of the Interior believes that Carousell has shown cooperation and proactivity, hence there is no immediate requirement for mandatory identity verification for all sellers, and the trial period has been extended to June 30, 2025. If there is no significant decrease in fraud cases, Carousell may need to implement comprehensive seller verification by October 1, 2025.
According to the Online Crime Harm Act (OCHA) effective in 2024, Carousell, Facebook Marketplace, Facebook ads, and Facebook pages must comply with the e-commerce service code. The platforms must verify user identities based on government-provided data and ensure that consumers can pay the sellers after the transaction is completed. However, to prioritize the implementation of user identity verification, this payment protection measure is not mandatory yet.
The Ministry of the Interior emphasizes that it will continue to monitor the effectiveness of these measures and take stricter regulatory actions when necessary to enhance e-commerce security and protect consumer rights.
