Meta, the parent company of Facebook and Instagram, is facing significant criticism over its handling of scam ads on its platforms. Recent reports indicate that the company is responsible for nearly half of all scam complaints related to Zelle transactions at JPMorgan Chase during the period from mid-2023 to mid-2024. The issue has drawn attention due to the rise of various scam tactics, including cryptocurrency schemes, AI-generated content, and organized criminal groups, which have led to a surge in fraudulent activities on these platforms. While Meta has stated that it is actively working on solutions through new technologies and partnerships, insiders suggest that the company may be prioritizing revenue generation over user safety, leading to a lack of rigorous enforcement against fraud.
Meta, the parent company of Facebook and Instagram, is under fire after a major report revealed that thousands of fraudulent ads have been allowed to run on its platforms. According to the Wall Street Journal, Meta accounted for nearly half of all scam complaints tied to Zelle transactions at JPMorgan Chase between mid-2023 and mid-2024. Other banks have also reported a high number of fraud cases linked to Meta’s platforms.
The problem of scam ads on Facebook has grown rapidly in recent years. Experts point to the rise of cryptocurrency schemes, AI-generated content, and organized criminal groups operating from Southeast Asia. These scams range from fake investment opportunities to misleading product offers and even the sale of nonexistent puppies. One example involves Edgar Guzman, a legitimate business owner in Atlanta, whose warehouse address was used by scammers in more than 4,400 Facebook and Instagram ads. These ads promised deep discounts on bulk merchandise, tricking people into sending money for products that never existed.
Meta says it’s fighting back with new technology and partnerships, including facial-recognition tools and collaborations with banks and other tech companies. A spokesperson described the situation as an epidemic of scams and insisted that Meta is taking aggressive action, removing more than 2 million accounts linked to scam centers in several countries this year alone. However, insiders tell a different story. Current and former Meta employees say the company has been reluctant to make it harder for advertisers to buy ads, fearing it could hurt the company’s bottom line. Staff reportedly tolerated between eight and 3,2 fraud ‘strikes’ before banning accounts and scam enforcement was deprioritized to avoid losing ad revenue.
Victims of these scams often lose hundreds or even thousands of dollars. In one case, fake ads promised free spice racks from McCormick & Co. for just a small shipping fee, only to steal credit card details and rack up fraudulent charges. Another common scam involves fake puppy sales, with victims sending deposits for pets that never arrive. Some scam operations are even linked to human trafficking, with criminal groups forcing kidnapped victims to run online fraud schemes under threat of violence. Meta maintains that it is not legally responsible for fraudulent content on its platforms, citing Section 230 of federal law, which protects tech companies from liability for user-generated content. In court filings, Meta has argued that it ‘does not owe a duty to users’ when it comes to policing fraud. Meanwhile, a class-action lawsuit over allegedly inflated ad reach metrics is moving forward, putting even more pressure on Meta to address transparency and accountability.
Staying safe online takes a little extra effort, but it’s well worth it. Here are some steps you can follow to avoid falling victim to scam ads. First, check the source and use strong antivirus software: Look for verified pages and official websites. Scammers often copy the names and logos of trusted brands, but the web address or page details may be off. Always double-check the URL for slight misspellings or extra characters and avoid clicking links in ads if you’re unsure about their legitimacy. The best way to safeguard yourself from malicious links that install malware, potentially accessing your private information, is to have strong antivirus software installed on all your devices. This protection can also alert you to scams and threats.
Additionally, research the seller by searching for reviews and complaints about the company or individual. If you can’t find any credible information, it’s best to avoid the offer. A quick online search can reveal if others have reported scams or had bad experiences, and legitimate businesses usually have a track record you can verify. Consider using a personal data removal service to help remove your personal information from data brokers and people-search sites. This means less of your data floating around for scammers to find and use. While these services usually charge a fee, they can save you a lot of time and hassle compared to doing it all yourself. Over time, you might notice fewer spam calls, emails, and even a lower risk of identity theft.
Never share sensitive information with unfamiliar sites. If you’re asked for personal information, double-check the legitimacy of the request. Scammers may ask for sensitive data under the guise of ‘verifying your identity’ or processing a payment, but reputable companies will never ask for this through insecure channels. Keep your devices updated by regularly updating your software, which adds an extra layer of protection against the latest threats. Updates often include important security patches that fix vulnerabilities hackers might try to exploit. By regularly updating your devices, you help close those security gaps and keep your personal information safer from scammers and malware.
Report suspicious ads if you see a scam ad on Facebook or Instagram. This helps alert others and puts pressure on Meta to take action. Reporting is quick and anonymous, and it plays a crucial role in helping platforms identify patterns and remove harmful content. Monitor your accounts regularly by checking your bank and credit card statements for unauthorized transactions, especially after making online purchases. Early detection can help you limit the damage if your information is compromised, and most banks have fraud protection services that can assist you if you spot something suspicious. By following these steps, you can better protect yourself and your finances from online scams. Staying alert and informed is your best defense in today’s digital world.