US Senators Demand Federal Probe Into Scam Ads on Facebook and Instagram – Meta Under Fire

US Senators Call for Probe Into Scam Ads on Facebook and Instagram

Two senior U.S. Senators, Josh Hawley and Richard Blumenthal, have called for an urgent federal investigation into Meta Platforms after new revelations indicated that Facebook and Instagram may be earning billions of dollars from scam and fraudulent advertisements. Their demand has intensified scrutiny over the company’s advertising policies and raised major concerns about online consumer safety.

According to internal Meta documents cited in recent investigations, the company estimated that nearly 10% of its global 2024 revenue came from ads that violated internal rules, including scams and prohibited products. This figure reportedly amounts to almost $16 billion, highlighting how widespread fraudulent ads have become on Meta’s platforms. Another document revealed Meta earns approximately $3.5 billion every six months from high-risk scam advertisements, raising further questions about enforcement failures within the company.

In a formal letter to the Federal Trade Commission (FTC) and the Securities and Exchange Commission (SEC), Senators Hawley and Blumenthal urged regulators to launch a comprehensive inquiry. They argued that if these findings are accurate, Meta should be forced to disgorge its profits, pay substantial penalties, and overhaul its ad-monitoring systems to protect users. The senators also criticized Meta’s public “Ad Library,” claiming it still contains clear examples of fraudulent promotions including crypto scams, online gambling, fake U.S. government benefits, AI-generated adult content, and deceptive financial schemes.

One highlighted example included a misleading ad falsely claiming that President Donald Trump was offering $1,000 in food assistance — a complete fabrication used to trick users into sharing personal information. The senators emphasized that such ads not only mislead the public but also contribute to massive financial harm.

According to the FTC, American consumers lost $158 billion last year due to online scams. Analysts argue that if Meta’s internal revenue estimates are accurate, a significant portion of these losses may be linked to fraudulent ads promoted on its platforms. Lawmakers stress that Meta has repeatedly failed to enforce its own policies, allowing scammers to exploit millions of users.

Meta has rejected the allegations, with company spokesman Andy Stone stating that the claims are exaggerated and “fundamentally misleading.” The company says it actively fights fraud and claims consumer scam complaints have dropped 58% over the last 18 months. Meta maintains that neither the company nor legitimate advertisers benefit from fraudulent activity, calling the senators’ accusations politically motivated.

Despite Meta’s response, pressure continues to build. Lawmakers, regulators, and digital safety experts argue that a full investigation is essential to determine whether Meta knowingly profited from scams and failed to take sufficient action. If regulators launch a formal inquiry, it could reshape the future of digital advertising and impose new accountability standards across the social media industry.

As the case develops, users and advertisers worldwide await clarity on whether one of the world’s largest tech companies allowed fraud to flourish—and what consequences might follow.