## CFA Sues Meta Over Scam Ads The **Consumer Federation of America (CFA)** filed a lawsuit against **Meta** on Tuesday, alleging that the company's handling of scammers on its platforms violates Washington, DC’s consumer protection laws. While many online scams involve direct outreach to victims, the CFA's lawsuit focuses on fraudulent advertising that Meta allegedly profited from and allowed to proliferate, despite public claims of taking fraud seriously. The lawsuit points to ads in Meta’s ad library that the CFA claims are well-known scams, including those targeting people by birth year and promoting fake government checks or free iPhones. In a statement, **Meta** spokesperson Chris Sgro said, "These allegations misrepresent the reality of our work and we will fight them." Ben Winters, CFA’s director of AI and data privacy, told WIRED that dubious ads can easily be found by searching Meta’s ad library with keywords like “free phone” and “stimulus check.” A quick search revealed ads for “secret tax checks” leading to websites promising a “Wall Street’s recession-proof investing strategy.” Meta did not respond to questions about the legitimacy of these ads. The CFA seeks damages, recovery of illegal profits, and business reforms. Winters emphasizes the need to take down repeat offenders and scrutinize ads promising non-existent government programs before they reach consumers. ## Meta's History with Scam Ads **Meta** has faced scrutiny due to the widespread use of **Facebook**, **Instagram**, and **WhatsApp** among Americans. A late 2025 Reuters report detailed internal Meta documents revealing the company's handling of fraudulent activity. One presentation estimated that Meta's platforms were involved in a third of all successful scams in the US. Another internal review allegedly found it “is easier to advertise scams on Meta platforms than Google.” A 2024 Meta document estimated that 10.1% of its revenue that year—around $16 billion—came from scams or prohibited content. The **FBI** estimated that Americans lost $16 billion from all internet crimes in 2024. Meta called the estimate “rough and overly inclusive,” stating the actual revenue was lower but declined to specify by how much. Sgro stated that Meta aggressively combats scams, removing over 159 million scam ads last year and taking down 10.9 million accounts associated with criminal scam centers. In June 2025, a bipartisan coalition of state attorneys general urged Meta to crack down on Facebook ads leading to WhatsApp investment scams, stating that Meta’s solutions were ineffective. ## Ongoing Legal Battles The US Virgin Islands attorney general’s office has also filed a lawsuit against Meta, alleging failure to crack down on scam advertising and charging higher rates for ads flagged as fraudulent. This lawsuit is ongoing. Winters stated that he is not waiting for federal action and appreciates the work of state attorneys general, but believes consumers need immediate relief. He emphasized the role of nonprofits in filling gaps where government action is lacking.