The US tech scene is being shaken by shocking accusations against the social media giant. An official letter sent by senators to federal agencies alleges that Meta has generated billions of dollars in ill-gotten gains through fraudulent ads. This development has reignited debates about user security.
Reports suggest that the company is choosing to monetize illegal content rather than block it. The proliferation of artificial intelligence and investment-focused fake content on the platform has alarmed both users and regulators.
Meta fraudulent ad investigation imminent
US Senators Josh Hawley and Richard Blumenthal have called for urgent investigations by the Federal Trade Commission (FTC) and the Securities and Exchange Commission (SEC). According to the allegations, based on internal documents reviewed by Reuters, the company generated approximately $16 billion in revenue from illegal ads in 2024 alone. This figure, equivalent to 10% of the company’s total annual revenue, further exacerbates the seriousness of the situation.
The senators argue that Meta knowingly compromised user security to generate this massive revenue. The letter demands immediate action from federal agencies and the seizure of the company’s ill-gotten gains. If an investigation is launched, the tech giant is expected to face heavy fines and legal penalties.
Leaked internal company documents prove that management was aware of the fraudulent ads, which it classified as “high risk.” According to reports, Meta generates $3.5 billion every six months from ads in this risky category alone. Despite this, the company is cutting back on its security teams and choosing to direct its resources to productive AI projects.
The senators also reached alarming conclusions in their review of the company’s Ad Library. Thousands of illegal gambling, fake cryptocurrency, and AI-powered sexual content ads remain active on the platform. This exposes the inadequacy or deliberate negligence of the company’s oversight mechanisms.
Analysis shows that nearly one-third of all fraud cases in the US occur on Meta platforms. The burden of this vulnerability falls directly on users. According to estimates, consumers lost more than $50 billion last year due to these misleading ads.
Meta spokespeople deny the accusations, claiming that user complaints have decreased by 58% in the last 18 months. However, senators point out that the company has reduced its security staff while turning a blind eye to content like “deepfake” videos and false promises of government aid. The report also highlights the scammers’ links to criminal organizations, particularly those based in China and Vietnam.
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