State AGs Urge Meta to Combat Fraudulent Investment Ads and Protect Consumers

On June 11, California Attorney General Rob Bonta, along with more than 40 Attorneys general, sent a letter to Internet technology giant Meta, urging it to take immediate action to improve its ability to detect and respond to fraudulent advertisements and protect consumers from financial loss.

Bonta expressed deep concern over the flood of investment scam ads on Meta's platforms, Facebook and WhatsApp, highlighting the inadequacy of Meta's current systems in addressing the issue. While Meta relies on a combination of automated detection and occasional manual review to identify, block, and remove scam ads, scammers continue to bypass these safeguards by modifying their advertisements.

Bonta highlighted Facebook newsfeeds filled with ads promoting fraudulent investment services, which feature images of well-known investors. These ads lead users to a WhatsApp download page, urging them to join a group. However, the well-known investors have no affiliation with these investment offers and do not endorse them. Meanwhile, reports of financial losses due to such scams are common. Victims suffer both devastating money loss and psychological and social consequences.

The letter was attached with screenshots of some fraudulent investment advertisements to the letter.

Despite submitting scam reports to Meta, investigators in New York continued to receive fraudulent investment advertisements for months afterward.

Bonta believed Meta can and must do more to protect consumers. If the firm cannot implement more effective processes, it should cease running investment advertisements altogether.

In 2023, the state AGs, including Bonta, jointly sued Meta for allegedly designing and applying harmful features on Instagram and Facebook that led to the addiction and physical and mental impairment of young children. The case remains ongoing.