Australian small business owners have raised serious concerns about Meta’s reliance on artificial intelligence chatbots for customer service, accusing the social media giant of inadequate human support that has jeopardized their livelihoods. Several entrepreneurs affected by hacking incidents reported prolonged difficulties regaining control over their Meta accounts, resulting in significant financial and operational losses.
Among those impacted is art educator Ali Mutch, who launched The Art Hive in January 2026 and built a substantial following on Facebook and Instagram. In June, hackers gained access to her Meta accounts, using a linked credit card to purchase over $1,700 worth of Facebook advertisements promoting unrelated products in Vietnam. Despite weeks of attempts to resolve the issue through Meta’s AI-powered chatbots, Ms. Mutch only regained partial control after purchasing Meta Verified for $280, granting her access to human customer service. However, hackers still maintained residual access, and in an unsuccessful effort to curb the breach, Meta deleted all of her Instagram accounts, further disrupting her business.
Ms. Mutch described Meta’s automated customer service system as a “hamster wheel of death,” expressing frustration over the lack of meaningful human assistance. The incident forced her to close a separate photography business, Phoenix and Wren, due to an inability to engage clients without her Meta profiles. She estimated losses, including canceled workshops and missed advertising opportunities, to total as much as $50,000. Meta did refund the funds stolen during the hacking but had not fully resolved account security issues at the time of reporting.
Melbourne-based travel agent Simone Lewis experienced similar challenges when she reported suspicious logins to her Facebook, Instagram, and WhatsApp accounts. Following the alert, she was locked out of all her Meta platforms and spent weeks attempting to reestablish her identity through automated review processes. While she eventually recovered her Facebook and Instagram profiles, Ms. Lewis remained unable to access her original WhatsApp account. She criticised the absence of accessible human support, stating that after automated appeals failed, there appeared to be no further recourse.
These individual cases highlight broader concerns about the digital consumer experience in Australia. A June 2026 report by the Telecommunications Industry Ombudsman (TIO) estimated that unresolved digital service problems cost Australians at least $497 million annually, a figure the Ombudsman, Cynthia Gerber, called a conservative estimate. The report has fueled calls to expand the TIO’s jurisdiction so that it can address ongoing issues with digital platforms more effectively.
When approached about these incidents, a Meta spokeswoman acknowledged users’ frustrations in accessing accounts and emphasized the company’s multiple pathways to resolve issues, including encouraging two-factor authentication and other security measures. Meta also controversially invited journalists to assist directly with individual customer support cases, underscoring the difficulties users face navigating the company’s AI-driven systems.
The mounting pressure on Meta reflects growing scrutiny over how technology companies manage cybersecurity breaches and customer service, raising questions about the balance between automation and human support in safeguarding small businesses reliant on digital platforms.