The Justice Ministry’s Consumer Protection Department (Senacon) on Friday ordered Google and Facebook subsidiaries in Brazil to remove ads for a fraudulent “credit card refund” scheme. The scam promises customers non-existent courses on how to get money by signing up for the supposed refund.
The scam is so widespread that on February 8, the Central Bank issued a statement clarifying that there is no rule or standard regarding “refunds” for credit cards.
The Brazilian Report had access to the Justice Ministry’s technical document justifying the decision. According to the text, the ads promised monthly payments of up to BRL 3,000 (USD 574). The scammers claimed that the government had charged a higher rate than necessary for using credit cards, and that cardholders were therefore entitled to a refund.
The scheme, however, “is a scam, a fraudulent ploy to reach consumers.”
“Despite the Central Bank’s warning,” the Justice Ministry found that “messages from scammers continue to circulate on wide-reaching digital platforms, such as YouTube, putting consumers at risk, especially the most vulnerable, whether due to age, health, knowledge, or social condition.”
One piece of data may help understand why these scams are so successful. The interest rate on so-called “revolving credit” has risen to a staggering 411 percent per year in March 2023, according to data from the Central Bank. This figure is particularly troubling given that the use of revolving credit in Brazil has never been higher – reaching BRL 224 billion (USD 42.5 billion) in 2021.
Victims of the scam took to social media to express their shock at the non-existence of the courses and their inability to contact the sellers.
Google and Facebook were given 48 hours to remove the content after being notified of the decision, or face a daily fine of BRL 15,000 (USD 2,870). From the public documents available, the decision includes all types of content related to the scam, not just paid ads.
Facebook’s press office in Brazil told The Brazilian Report that the company had not yet been formally notified of Senacon’s decision. Google’s press office had no comment.
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