Mark Zuckerberg’s Meta refuses to crack down on rampant scams from bogus ads to avoid losing revenue: report

New York Post - May 16th, 2025
Open on New York Post

Meta Platforms Inc., the parent company of Facebook and Instagram, has been criticized for allegedly allowing thousands of fraudulent ads to run on its platforms. A report by the Wall Street Journal suggests that Meta has turned a blind eye to scams to protect its ad revenue, with the company accounting for nearly half of all scam complaints tied to Zelle transactions reported by JPMorgan Chase. The scams involve various schemes, including fake ads tied to legitimate businesses and fraudulent offers on nonexistent puppies, which have resulted in significant financial losses for victims. Despite Meta's claims of taking aggressive action against these scams, insiders report that the company is reluctant to impose stricter controls on advertisers.

The implications of this issue are significant, as Meta's platforms are used by over three billion people daily, making them a prime target for global criminal networks. The rise of cryptocurrency schemes, AI-generated content, and cross-border criminal operations has exacerbated the problem, with scams often linked to human trafficking and other severe crimes. Meta's reliance on Section 230 of the federal telecommunications law to avoid liability for fraudulent content raises further concerns about the platform's accountability. As Meta continues to report substantial ad revenue growth, questions about its commitment to user safety remain a contentious topic.

Story submitted by Fairstory

RATING

7.2
Fair Story
Consider it well-founded

The article provides a comprehensive exploration of the issue of online scams on Meta's platforms, drawing on reputable sources and specific examples to support its claims. It effectively highlights the potential risks and challenges associated with digital fraud, making it a relevant and engaging read for a broad audience. The article's strengths lie in its timeliness, public interest, and potential impact on discussions about tech industry accountability and consumer protection. However, it could benefit from a more balanced presentation of perspectives and greater transparency in sourcing to enhance its overall credibility. Despite these areas for improvement, the article succeeds in raising awareness about an important issue and prompting further consideration of the responsibilities of major tech companies in safeguarding user interests.

RATING DETAILS

7
Accuracy

The article presents a detailed account of alleged fraudulent activities on Meta's platforms, citing a report by the Wall Street Journal and statements from various sources. The claim that Meta's platforms accounted for nearly half of all scam complaints tied to Zelle transactions reported by JPMorgan Chase is specific and significant, yet it would benefit from direct data access or more detailed verification from the bank itself. The story accurately reflects the complexity and scale of scams, including cryptocurrency schemes and AI-generated content, which aligns with broader industry reports on these issues. However, the article could improve accuracy by providing more specific data or corroborating sources to support these claims. Meta's response, mentioning the removal of ad accounts and the use of Section 230 as a legal shield, is accurately reported, though the implications of these legal defenses could be further explored to enhance understanding of their impact.

6
Balance

The article predominantly presents the perspective of those critical of Meta's handling of scams, including victims and anonymous sources within the company. While it includes a response from Meta's spokesperson, the coverage leans towards highlighting the company's alleged shortcomings. The balance could be improved by including more detailed insights from Meta about their efforts to combat fraud and possibly expert opinions on the challenges of managing such large platforms. Additionally, the article could explore the broader context of online fraud across different platforms to provide a more balanced view of the issue.

8
Clarity

The article is well-structured and uses clear language to convey the complex issue of scams on Meta's platforms. It effectively outlines the main claims and provides specific examples to illustrate the problem, such as the fraudulent ads tied to Edgar Guzman and McCormick & Co. The inclusion of direct quotes from victims and Meta's spokesperson adds depth and clarity to the narrative. However, the article could benefit from a more explicit explanation of certain technical aspects, such as how AI-generated content contributes to the scams, to ensure all readers can fully grasp the issues discussed.

8
Source quality

The article cites the Wall Street Journal, a reputable source known for investigative journalism, and includes statements from current and former Meta employees, regulators, and banks. This variety of sources enhances the credibility of the claims. However, the reliance on anonymous sources for some claims, while understandable given the potential repercussions for whistleblowers, slightly reduces the transparency of the sourcing. The inclusion of Meta's spokesperson provides a counterbalance, ensuring that multiple viewpoints are represented. Overall, the source quality is strong, but the article could benefit from more named sources to increase transparency.

7
Transparency

The article provides a clear account of the sources and methods used to gather information, primarily relying on a report by the Wall Street Journal and statements from involved parties. However, it could enhance transparency by offering more detailed explanations of how the data was obtained or verified. For example, direct quotes from the internal Meta documents or specifics on the methodology used by the Wall Street Journal in their investigation would provide readers with a clearer understanding of the report's foundation. Additionally, disclosing any potential conflicts of interest or biases in the sources would further improve transparency.

Sources

  1. https://thespinoff.co.nz/internet/06-05-2025/is-meta-ai-a-better-scam-spotter-than-metas-real-life-moderators
  2. https://www.adexchanger.com/platforms/meta-previews-new-optimization-tools-as-it-hypes-ai-driven-ad-revenue-growth/
  3. https://www.threads.com/@mattnavarra/post/DJtSo1CKZVl/meta-battles-an-epidemic-of-scams-as-criminals-flood-instagram-and-facebookmetas