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Fox News
22-05-2025
- Business
- Fox News
Meta faces increasing scrutiny over widespread scam ads
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. "What sucks is we have to break it to people that they've been scammed. We don't even do online sales," Guzman told reporters. 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 32 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. 1. 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 phishing emails and ransomware scams, keeping your personal information and digital assets safe. Get my picks for the best 2025 antivirus protection winners for your Windows, Mac, Android and iOS devices. 2. Be skeptical of deals that seem too good to be true: If an ad offers products at an unbelievable price or promises huge returns, pause and investigate before clicking. Scammers often use flashy discounts or urgent language to lure people in quickly. Take a moment to think before you act, and remember that if something sounds impossible, it probably is. 3. Research the seller: Search 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. 4. Consider using a personal data removal service: There are companies that can help remove your personal info 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. Check out my top picks for data removal services here. 5. Never share sensitive information: Don't enter your credit card or bank details on 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. 6. Keep your devices updated: Keeping your software updated 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. 7. Report suspicious ads: If you see a scam ad on Facebook or Instagram, report it using the platform's tools. 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. 8. Monitor your accounts: Regularly check 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. The mess with scam ads on Meta's platforms shows why it's important to look out for yourself online. Meta says it's working on the problem, but many people think it's not moving fast enough. By staying careful, questioning suspicious offers and using good security tools, you can keep yourself safer. Until the platforms step up their game, protecting yourself is the smartest move you can make. Should Meta be doing more to protect its users from scam ads, even if it means making changes that could affect its advertising revenue? Let us know by writing us at For more of my tech tips and security alerts, subscribe to my free CyberGuy Report Newsletter by heading to Follow Kurt on his social channels: Answers to the most-asked CyberGuy questions: New from Kurt: Copyright 2025 All rights reserved.
New York Post
16-05-2025
- Business
- New York Post
Mark Zuckerberg's Meta refuses to crack down on rampant scams from bogus ads to avoid losing revenue: report
Meta reportedly allowed thousands of bogus ads to run on its platforms while refusing to crack down on alleged cases of fraud to avoid losing ad revenue, according to a bombshell report. The Facebook and Instagram parent accounted for nearly half of all scam complaints tied to Zelle transactions reported by JPMorgan Chase between mid-2023 and mid-2024, according to the expose Friday by the Wall Street Journal. Other lenders that use the peer-to-peer payment app also have received high amounts of fraud claims linked to Meta, people familiar with the matter told the Journal, which spoke to former and current staffers, regulators and banks, and reviewed internal Meta documents. 5 Facebook and Instagram users have reportedly fallen victim to fraud perpetrated by scammers based abroad. Prostock-studio – Meta's platforms — used by more than three billion people daily — have long faced issues with fraud. But the problem has reportedly grown in scale in recent years, fueled by the rise of cryptocurrency schemes, AI-generated content and sprawling criminal operations based in Southeast Asia. One reported scam involved a barrage of deceptive ads falsely tied to Edgar Guzman, who runs a legitimate wholesale business outside Atlanta. Over the course of a year, more than 4,400 different Facebook and Instagram ads used Guzman's warehouse address to promote steep discounts on bulk merchandise — including pallets of power tools for $29 and boxes of returned Amazon products starting at just $1. 5 Meta, led by CEO Mark Zuckerberg, has claimed that it holds no legal responsibility for fraudulent content on its platforms. AP 'What sucks is we have to break it to people that they've been scammed — we don't even do online sales,' Guzman told the Journal, adding that the fraudulent ads have damaged his company's reputation through negative reviews. Another nefarious scheme capitalized on the trusted image of global food giant McCormick & Co, the Journal reported. Facebook and Instagram users were targeted with bogus ads promising a free spice rack and assortment of products from the brand, requiring only a $9.99 shipping fee. The scam lured victims to a site designed to mimic McCormick's official website, complete with a fake survey and prize game. After submitting their credit card information, victims were charged for multiple fraudulent purchases totaling hundreds of dollars. 5 Users of Meta's social networks Facebook and Instagram say they have fallen victim to scam artists. Askar – 'If their revenue is coming from fraud, what is their incentive to protect people?' Marah Johnson, a 58-year-old artist from Orange County, Calif., who fell for the scam, told the Journal. 'It feels like Meta is helping the scammers out.' A third scheme thriving on Meta's platforms involves the sale of nonexistent puppies. Although Meta bans peer-to-peer live animal sales outside narrow exceptions, a simple search for 'puppies' revealed thousands of questionable ads. 5 According to the report, Meta's platforms were the origin point for nearly half of all scam complaints tied to Zelle transactions reported by JPMorgan Chase between mid-2023 and mid-2024. Christopher Sadowski Many of them used stolen images and claimed to be from breeders 'near me,' but were traced to sellers operating out of Cameroon. These listings often lacked any affiliation with verified breeders or rescue organizations, in violation of Meta's own policies, according to the Journal. Victims were typically asked to send deposits to secure a pet that never arrived. The various scams can bilk users out of losses ranging into the hundreds of thousands of dollars, according to the Journal. 'In recent years, the epidemic of scams has grown in scale and complexity, driven by ruthless cross-border criminal networks that operate on a global scale,' a Meta spokesperson told The Post on Friday. 'As this scam activity has become more persistent and sophisticated, so have our efforts.' But current and former staffers told the the Journal that Meta has been hesitant to impose stricter controls on advertisers and has declined to beef up its anti-fraud enforcement mechanisms. The company reported a 22% increase in ad revenue last year — bringing it to more than $160 billion. Facebook and Instagram staffers are instructed to tolerate between eight and 32 fraud 'strikes' before banning accounts while scam enforcement overall is deprioritized to avoid losing ad revenue, sources told the Journal. When Meta employees personally escalated the problem to their superiors, the limit dropped to between four and 16 strikes, according to the Journal. Meta denied that it has put profits ahead of safety, 'Eighty five percent of ad accounts removed or banned for violating our policies never spent a dollar' and 'nearly 70% of ad accounts removed for violating our policies are removed or banned within a week of account creation, many on the very day they're created,' the spokesperson said. 5 Meta has reportedly been lax in cracking down on overseas-based scam artists who rip off Facebook and Instagram users. AP However, the company's failure to clamp down on bogus ads has allegedly helped fuel human trafficking-linked scam operations in Southeast Asia, where kidnapped victims are forced to work under threat of 'extreme forms of torture and abuse,' the Journal reported. The Meta spokesperson insisted the company is taking aggressive action against these organized fraud operations — often referred to as 'pig butchering.' 'We're going after the criminal organizations behind 'pig butchering' and other schemes, which target people globally through messaging, dating, social media and crypto and other apps to convince them to 'invest' under false pretenses,' the rep said. 'This year alone, we've taken down over two million accounts linked to scam centers in Myanmar, Laos, Cambodia, the United Arab Emirates and the Philippines.' The company is experimenting with facial-recognition tools, issuing scam warnings to users and collaborating with financial institutions and other tech companies because 'this crime affects many industries and cuts across different parts of society,' the rep added. Those who have been scammed are unlikely to get a refund from Meta . In legal filings, the tech titan has contended that it holds no legal responsibility for fraudulent content on its sites — citing the controversial Section 230 of the federal telecommunications law that shields platforms. In a motion to dismiss a federal lawsuit that accused the company of failing to remove cryptocurrency-related impersonation scams, Meta wrote that 'the alleged underenforcement of Meta's monitoring policies cannot give rise to liability,' and argued it 'does not owe a duty to users' when it comes to policing fraud.
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First Post
16-05-2025
- Business
- First Post
Conned on Instagram, Facebook? Meta says platforms facing ‘epidemic of scams'
In Meta's own words, its platforms are affected by an 'epidemic of spams'. Despite such acknowledgement, scam enforcement does not appear to be a priority for Meta. read more The changes come as Meta and other tech giants, such as Amazon and Apple, make visible efforts to improve relations with US President-elect Donald Trump. Image Credit: Reuters Meta-owned Instagram and Facebook have emerged as favourite platforms for scammers on the internet. The problem is such that Meta has acknowledged that its platforms are affected by an 'epidemic of spams'. The spams populating the two platforms range from misleading ads that thrive on stolen business addresses or dubious sales of pets. Even though the company has acknowledge the problem, it does not appear to taking serious steps towards tackling it — irrespective of its statements. STORY CONTINUES BELOW THIS AD The Wall Street Journal has cited internal documents to report that Meta has deprioritised scam enforcement in recent years over fears that it could take down ads mistakenly during such enforcement. The documents also show that Meta has been cutting costs and shifting resources away from such initiatives. The revelations have come at a time when Meta has ended its fact-checking programme that also served as a check against misleading content on the platform. Nearly half of all digital payments scam on Meta: Report In 2023 and 2024, nearly half of all reported scams on digital payments service Zelle for JPMorgan Chase took place on Meta-owned platforms, according to The Journal. The newspaper reported that other banks have also reported 'high fraud claims' originating on Meta-owned platforms — Meta owns Facebook, Instagram, and WhatsApp. Similar to the United States, regulators in the United Kingdom and Australia have also found similar levels of fraud, according to the newspaper. If that was not enough indicator of the problem, consider this: the newspaper has reported that Meta's internal analysis from 2020found that 70 per cent of all advertisers on its platforms were promoting scams. Even with a demonstrated history of scamming, Meta does not block scammers. The newspaper reported internal documents from last year showing that advertisers are allowed anywhere between eight to 32 violations before they are banned. Edgar Guzman's case study In a case study, The Journal reported the story of Edgar Guzman, who runs a home-improvement supplies business out of a warehouse in Atlanta. Guzman told the newspaper that scammers have been using the name and address of his business to dupe people for two people. He said that people make payments to scammers after seeing ads with his business' name and contact information. He said that victims reach out to him when products are obviously not delivered. He said that it 'sucks' to tell people they were scammed. STORY CONTINUES BELOW THIS AD 'What sucks is we have to break it to people that they've been scammed—we don't even do online sales. 'We keep reporting pages to Meta, but nothing ever happens,' said Guzman. The newspaper reported that 4,400 ads were listed on Meta with Guzman's address but only 15 of those ads were gen
