US Senators Call for Probe of Scam Ads on Facebook and Instagram
U.S. Senators Josh Hawley (R-MO) and Richard Blumenthal (D-CT) have raised concerns over Meta’s handling of scam advertisements on its platforms, Facebook and Instagram. Skepticism surrounds the company’s claimed efforts to curb illicit advertising, prompting the senators to call for investigations by the Federal Trade Commission (FTC) and the Securities and Exchange Commission (SEC).
– Key Issues of Concern:
– Illicit Revenue: A recent Reuters report highlighted that Meta generated approximately $16 billion from scam ads in 2024, with $3.5 billion earned every six months from higher risk advertising.
– Regulatory Oversight: The senators pointed out that Meta’s own internal documents indicate its anti-fraud measures often do not apply to numerous ads violating its guidelines.
– Fraudulent Advertisements: They cited alarming examples from Meta’s Ad Library, identifying ads promoting illegal gambling, payment scams, and counterfeit government services. Notably, Meta estimated its platforms accounted for a third of all scams in the U.S., implicating them in over $50 billion in consumer losses.
– Meta’s Response:
– In reaction, Meta claimed it has reduced user reports of scams by 58% in the past year and labeled the senators’ letter as exaggerated. Spokesman Andy Stone emphasized the company’s commitment to fighting fraud, asserting that legitimate advertisers do not support such content.
– Broader Implications:
– The senators underlined concerns about fake ads mimicking political figures, including a deceptive claim linked to former President Trump offering money to food assistance recipients. They emphasized that the beneficiaries of these scams often include cybercrime factions overseas.
Hawley and Blumenthal’s plea for intervention highlights a critical examination of Meta’s responsibilities in regulating its advertising platforms, as the prevalence of scams continues to jeopardize consumer trust.