Meta’s platforms are being exploited by scammers through deceptive ads featuring deepfakes and false endorsements.
Weak enforcement and revenue-driven ad policies have allowed fraudulent campaigns to thrive.
Global regulators are pressuring Meta to improve ad transparency and protect users from online scams.
Meta Platforms, the parent company of Facebook and Instagram, is facing growing criticism over its ad policies. Many experts and regulators believe these policies have allowed online fraud to thrive. While Meta claims it is committed to fighting harmful and deceptive content, the current system appears to be falling short.
Recent events and investigations show that scam advertisements are not only common on Meta’s platforms but also cause significant financial and emotional harm to users.
In recent years, fraudulent advertisements have flooded Facebook and Instagram. These scam ads use a wide range of tactics to trick users. Some of the most common scams involve fake celebrity endorsements, false investment opportunities, and promotions for non-existent products or services.
One major incident involved over 230,000 fake advertisements using the image and name of a well-known Australian billionaire. These ads falsely claimed that the celebrity supported investment schemes, which turned out to be scams. A US judge has now demanded that Meta explain how such a large number of fake ads were allowed to run and what the company did to stop them.
Another example involved fake ads promoting AI tools like video generators. These ads were created by a cybercriminal group and ran on both Facebook and LinkedIn. The ads claimed to offer advanced AI software, but clicking on them exposed users to dangerous malware that could steal passwords, digital currency, and sensitive data. Millions of people viewed these ads before they were taken down.
Banks and financial institutions have noticed a sharp increase in fraud complaints connected to Meta’s platforms. A leading US bank reported that nearly half of the scam complaints it received about its money transfer app were linked to Facebook and Instagram. These scams often involved fake giveaways or misleading posts that tricked users into giving away personal or financial information.
In Australia, regulators have stated that scam losses have reached over $2 billion in the past year. A large portion of these scams were linked to social media platforms, particularly through deceptive advertising. Government officials believe that Meta’s platforms are being used as tools by fraudsters to reach large audiences quickly and cheaply.
In Taiwan, Meta was fined for failing to provide advertiser information when scam ads were reported. This marked the first time the country used a new law designed to fight online fraud. Authorities are now increasing pressure on tech companies to be more transparent and responsible.
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Internal documents suggest that Meta is aware of the growing problem but has not done enough to stop it. One report indicated that as many as 70% of new advertisers on the platform may be promoting scams or low-quality products. Despite this, Meta often allows these advertisers to stay active for a long time.
Instead of banning accounts immediately, the company reportedly gives several warnings, or "strikes," before taking action. Critics argue this gives scammers enough time to run multiple harmful ad campaigns and cheat many users. Meta's enforcement team has also been accused of reducing the priority of fraud prevention in order to protect advertising revenue. Last year alone, Meta made over $160 billion from advertising, making it one of the company’s biggest sources of income.
Another controversial move was the company’s decision to move away from professional fact-checking. Instead, Meta is now relying more on a community-based system, where users can flag false information. While this system may help in some cases, it also leaves room for dangerous and misleading ads to remain online longer before action is taken.
Scammers are now using advanced technology, such as artificial intelligence and deepfakes, to make their ads more believable. Deepfakes are computer-generated images or videos that look real but are fake. These can be used to make it seem like a celebrity is speaking in a video or supporting a product, when in fact they are not.
In one recent case, a famous actor’s deepfake was used in a scam ad that ran on Facebook. The video looked so real that many users believed it. The actor eventually spoke out publicly and demanded that the ad be removed. Meta took down the ad, but only after it had already reached thousands of people.
Meta has said it is working on technology to detect and block deepfake ads. One method being tested is facial recognition software that can identify when a celebrity’s image is being used without permission. However, scammers continue to improve their tactics, and it remains unclear whether Meta’s new tools can keep up.
Around the world, regulators and lawmakers are stepping in to force Meta to do better. In Europe, there is a push to introduce new rules that would require platforms to verify advertisers who are promoting financial products. The goal is to reduce the number of scams and make online advertising safer for users.
In the United States, courts are reviewing how much legal protection Meta should have when fraudulent ads are posted on its platforms. Currently, internet companies are often shielded from responsibility because the content is created by third-party users. However, legal experts are now questioning whether this protection should apply when companies are making money from harmful ads.
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The ongoing wave of scams shows that Meta's current system for reviewing and approving ads is not working well. While the company has made public promises to improve its policies, real change has been slow. In the meantime, millions of users are at risk of being misled or losing money.
Experts believe that Meta must take stronger action to protect users. This could include stricter checks on new advertisers, faster removal of suspicious ads, and more investment in technology to detect fraud. It may also require Meta to be more transparent about how it handles complaints and reports from users.
There is also a growing belief that relying only on automated systems and user reports is not enough. Professional fact-checkers and better-trained moderation teams are needed to spot complex scams, especially those that use deepfake videos or AI-generated content.
Meta’s platforms have become central to the way people communicate, shop, and stay informed. But with that influence comes responsibility. The increasing number of scam ads shows that Meta's advertising policies may be putting users at risk. Without stronger rules and better enforcement, fraudsters will continue to use the platform to exploit people. Governments, regulators, and the public are now demanding answers — and more importantly, solutions.