A bipartisan coalition of 42 state attorneys general, led by New York Attorney General Letitia James, is calling on meta to aggressively address the proliferation of investment scams on Facebook. These scams exploit the images of well-known figures such as Warren Buffett to deceive unsuspecting investors.

According to James, these fraudulent advertisements continue to surface despite repeated reports to Meta, highlighting the inadequacy of the platform’s current review processes. The scams have resulted in millions of dollars in losses for retail investors.

The deceptive ads often feature promises of exclusive access to investment advice from figures like Buffett, Elon Musk, or Cathie Wood of Ark Invest. These ads direct users to chat groups on WhatsApp, another meta-owned platform, where thay are exposed to alleged pump-and-dump schemes. These schemes involve artificially inflating the price of thinly traded stocks,allowing scammers to profit quickly while leaving other investors with significant losses.

Meta’s Role in Online Fraud

“Thousands of facebook users have lost hundreds of millions of dollars to these scams and Meta must do more to stop these fraudulent ads.”

Meta, which owns Facebook, Instagram, and WhatsApp, faces increasing scrutiny over its inability to control the surge in cyber scams across its platforms. The Wall Street Journal has characterized Meta as a “cornerstone of the internet fraud economy.” The issue has gained international attention, with lawsuits like the one filed by an Australian billionaire who claims meta’s AI-driven advertising system created and amplified fake ads using his image.

“Thousands of Facebook users have lost hundreds of millions of dollars to these scams and Meta must do more to stop these fraudulent ads from running on its platforms,” James stated. “I am leading a bipartisan coalition calling on Meta to step up its review of ads to stop these scams. I also urge all New Yorkers to be extra careful before putting their money in investments they see advertised on social media.”

The attorneys general are urging Meta to enhance its ad policing, including increasing human review of potential scams. They suggest that meta should cease running investment ads altogether if it cannot effectively curb the fraudulent activity.

Joining James in this effort are attorneys general from California,Connecticut,Georgia,Massachusetts,michigan,New Jersey,and Pennsylvania,among others.