An investigative report reveals that Facebook and Instagram are grappling with a significant increase in scams, largely fueled by crime networks and the cryptocurrency boom. Internal documents show that 70% of new advertisers are associated with scams, yet Meta has been slow to implement measures to combat this issue, prioritizing advertising revenue over user safety. The report highlights that the company has allowed advertisers numerous chances before banning accounts, enabling ongoing fraudulent activity, particularly on Marketplace, its secondhand goods platform. Meta argues in court that it has no responsibility to mitigate fraud on its platforms.
Internal documents from 2022 show that 70% of newly active Meta advertisers promote scams. Employees have tried to flag the issue, but the company has failed to take systemic measures.
Current and former employees say Meta is reluctant to add impediments for ad-buying clients, driving a 22% increase in advertising revenue last year.
Adding to the problem is Marketplace, which has surpassed Craigslist and is a popular hunting ground for scammers. Meta has failed to effectively monitor scams.
In a motion to dismiss a legal case, Meta argued that it bears no legal responsibility to address the issue of scams on its platforms.
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