Oakland, CA — California Attorney General Rob Bonta is demanding immediate action from Meta — the tech giant behind Facebook and Instagram — in response to a disturbing surge of fraudulent investment scam advertisements plaguing its platforms. In a powerful bipartisan effort, Bonta and 41 other attorneys general from across the U.S. have signed a letter calling on Meta to overhaul its approach to detecting and removing scam ads or face pressure to ban all investment ads altogether.
“It’s alarming to see how easy investment scam ads — which have cost some consumers their life savings — can be created and disseminated on Meta platforms,” said California Attorney General Bonta. “Meta can and must do right by the millions of people that use its platforms.”
“It’s concerning that Meta isn’t doing enough to stop scammers from luring people into giving up their life savings with Facebook ads that feature fake celebrity endorsements or other lies,” said Colorado Attorney General Weiser. “I’m pleased that this broad, bipartisan group of attorneys general from nearly every state in the country is joining together to send a message to Meta that they have to do a better job of making sure ads on their platforms aren’t aiding in fraud. If Meta can’t police their own ads, they ought to stop allowing investment ads altogether.”
A National Consumer Crisis
The scam ads, which frequently appear on users’ Facebook newsfeeds, often use photos of respected investors or public figures to trick users into joining fraudulent WhatsApp groups. Once inside, unsuspecting victims are lured into so-called “pump and dump” schemes, where they are urged to buy into obscure penny stocks. Scammers artificially inflate the stock price and then cash out, leaving investors with worthless shares and sometimes devastating financial losses.
The attorneys general warn that Meta’s current systems — a mix of automation and limited human moderation — are failing to catch the flood of fraudulent ads. The letter describes the platform’s review methods as “inadequate,” allowing thousands of dangerous scams to slip through the cracks and reach vulnerable users.
Beyond Financial Loss: Deep Psychological Toll
Victims of these scams often suffer more than just financial damage. Some individuals lose their entire life savings, which can lead to psychological trauma, family strain, and long-term emotional distress. The letter calls on Meta to implement stricter ad review protocols and to take immediate steps to ensure users are protected from these predatory schemes.
A Pattern of Inaction?
This is not the first time Meta has faced criticism from Bonta and other attorneys general. The tech conglomerate is currently embroiled in a lawsuit over allegedly designing addictive features targeting children and teens on Facebook and Instagram. In 2024, Bonta also rebuked Meta for its slow response to widespread account takeovers and lockouts, warning that the company’s lack of action was leaving users exposed to fraud and identity theft.
With this latest warning, Attorney General Bonta and his bipartisan coalition are putting the pressure on Meta to change — or be held accountable for enabling widespread digital fraud.
A Broad National Coalition
Joining Bonta in the fight are attorneys general from nearly every U.S. state and territory, including New York, Pennsylvania, Texas, and the District of Columbia. The sheer scale of this coalition signals growing frustration among state leaders over Meta’s handling of user safety and misinformation.
“The message is clear,” California Attorney General Bonta said. “Meta has the resources and the responsibility to protect its users. If it won’t act voluntarily, we will continue to push until it does.”
What’s Next?
The letter gives Meta a choice: meaningfully improve its fraud detection infrastructure, or face growing calls to ban investment ads altogether. For millions of users who rely on social media every day, the stakes couldn’t be higher.
