Meta has announced a significant legal initiative aimed at curbing deceptive advertising practices on its platforms. The social media titan revealed on Thursday that it has initiated legal proceedings against advertisers from Brazil, China, and Vietnam, accused of engaging in fraudulent activities.
The company has taken decisive steps by suspending the advertisers’ payment methods, disabling related accounts, and blocking the domain names utilized in these scams. Furthermore, Meta has issued cease and desist letters to eight marketing consultants who allegedly facilitated the bypassing of its advertising policy enforcement mechanisms.
Targeting Deceptive Advertising Tactics
Among the defendants are three advertisers involved in so-called ‘celeb-bait’ scams, which exploit the images of celebrities to lure users into clicking misleading ads. These ads direct users to fraudulent websites designed to harvest personal information or trick them into financial scams.
The lawsuits name Vitor Lourenço de Souza and Milena Luciani Sanchez from Brazil for promoting fake healthcare products using altered celebrity visuals. Another Brazilian entity, B&B Suplementos e Cosméticos Ltda., is accused of similar fraudulent activities. Shenzhen Yunzheng Technology Co., Ltd from China is also implicated in running investment scams targeting international users.
Strengthening Protections Against Scams
Meta emphasizes its commitment to protecting celebrities whose images are frequently misused in these scams. The company has developed a program safeguarding the likenesses of over 500,000 public figures globally.
In addition, Meta has filed a lawsuit against Vietnam-based Lý Văn Lâm for employing cloaking techniques to deceive its ad review systems. This method involves presenting benign content during reviews while showing malicious content to real users, often leading to subscription fraud.
Broader Implications and Ongoing Efforts
These legal actions come in the wake of a Reuters investigation revealing that a significant portion of Meta’s ad revenue in China stemmed from illicit advertisements. A further analysis by Gen Digital highlighted that approximately 31% of ads on Meta platforms directed users to scams or malware.
Scam operations often utilize advanced techniques such as malvertising and pig butchering to exploit victims, particularly in Japan. Victims are directed to fraudulent investment sites using AI-powered chatbots to manipulate them into making payments.
Law enforcement agencies have also been active in dismantling these scam networks. In Cambodia, government efforts have significantly reduced scam activities, with numerous arrests and deportations.
The persistent fight against online scams underscores the need for continued vigilance and cooperation among tech companies, governments, and cybersecurity experts to protect users and maintain the integrity of digital advertising platforms.
