Meta platforms flooded with illegal advertisers and criminal networks
A Wall Street Journal study found that as many as 70% of new advertisers on Meta in 2022 were engaged in scams, selling illegal goods or selling low-quality products. This increase in fraudulent activity directly affected financial institutions: nearly half of all frauds reported by digital payments platform Zelle to J.P. Morgan Chase between mid-2023 and mid-2024 came from Meta platforms.
Meta’s platforms, Facebook and Instagram, have become breeding grounds for international crime organizations that exploit unsuspecting users. These fraudulent practices, ranging from bogus ads to misleading marketplace listings, are trapping consumers worldwide and worrying regulators.
The victims range from online shoppers being tricked by fake offers to people looking for pets and falling prey to misleading ads. Although Meta claims to be actively fighting this problem, removing more than two million fraud-related accounts last year and implementing measures such as facial recognition and warning labels, their stance on legal liability has drawn criticism.
In a 2023 legal filing, Meta argued that they are not required to monitor third-party fraud, citing Section 230 safe harbor protections. This position was rebuffed by former plaintiffs who claim Meta’s unique platform gives them the power and responsibility to curb an industry that exploits workers and drains hundreds of millions from consumers.
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