U.S. senators demand federal probe into scam ads on Facebook and Instagram
U.S. senators Josh Hawley and Richard Blumenthal are calling for federal investigations into Meta Platforms following a report revealing the company’s significant revenue from advertisements promoting scams and illicit products on Facebook and Instagram.
In a letter sent to the heads of the Federal Trade Commission (FTC) and the Securities and Exchange Commission (SEC), the senators urged regulators to open probes and, if necessary, take enforcement action to force Meta to disgorge profits, pay penalties, and halt the publication of fraudulent ads, News.Az reports, citing Reuters.
The request follows a Reuters investigation that uncovered Meta’s internal projections from late 2024 estimating the company earned about 10% of its yearly revenue — roughly $16 billion — from illicit advertising. One company document also stated Meta makes $3.5 billion every six months from “higher risk” scam ads.
Other internal reports indicated that Meta’s anti-fraud policies often did not apply to many ads that regulators and Meta staff believed violated the “spirit” of the platform’s rules.
Meta has disputed the claims. Company spokesman Andy Stone said the accusations in the senators’ letter were “exaggerated and wrong.”
The company pointed to a 58% reduction in user-reported scams over the past eighteen months, saying it continues to aggressively combat fraudulent content.
Hawley and Blumenthal said a review of Meta’s Ad Library—the public database of ads running on its platforms—still shows active promotions for illicit gambling, payment scams, crypto fraud, AI deepfake sexual content, and fake U.S. federal benefit programs.
The senators cited earlier Reuters reporting that Meta estimated its platforms were connected to one-third of all scams in the United States, while the FTC recorded $158.3 billion in scam-related losses last year.
“This would suggest Meta was responsible for more than $50 billion in consumer loss,” the senators wrote.
The senators raised particular alarm over deepfake ads impersonating U.S. political leaders, including fraudulent videos purporting to show President Donald Trump offering $1,000 to food assistance recipients.
“While Meta has been warned about advertisement deepfakes impersonating politicians, it still continues to run fraudulent clips,” they wrote.
They also warned that many scam beneficiaries are cybercrime networks in China, Sri Lanka, Vietnam, and the Philippines.
Hawley and Blumenthal accused Meta of choosing profit over safety, saying the company has slashed safety teams, including staff handling FTC-mandated reviews, while investing heavily in generative AI projects.
“Scams have been allowed to take over Facebook and Instagram,” they wrote.
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