Attorney General Dave Sunday, along with a bipartisan coalition of 42 Attorneys General, has sent a letter to Meta Platforms, Inc., urging the company to address the growing number of scam advertisements appearing on Facebook.
The ads in question use the names and likenesses of well-known financial figures, such as Warren Buffett, and reputable institutions to lure users into WhatsApp “investment groups.” These groups are often used to execute illegal “pump-and-dump” schemes, which mislead users into purchasing stocks based on false information. Once stock prices rise due to increased interest, scammers sell off their shares, leaving victims with significant financial losses.
Attorney General Sunday stated that these schemes constitute investment fraud and criticized Meta for allowing such predatory ads to run on its platform. He emphasized the need for Meta to take greater responsibility in protecting consumers.
Despite Meta’s use of automated systems and limited human oversight to detect and remove fraudulent ads, scammers continue to evade detection by frequently altering their advertisements.
The coalition of Attorneys General is urging Meta to improve its ad review processes, including more rigorous advertiser screening and increased human review for investment-related ads. If Meta is unable to curb the spread of these scams, the coalition is calling for the company to halt all investment advertising on its platforms.
