New York Attorney General Letitia James, along with a coalition of state attorneys general, is urging Meta to take stronger action against fraudulent investment scams proliferating on Facebook. These scams typically exploit the likenesses of celebrities and public figures to lure users into bogus investment schemes, often resulting in substantial financial losses for victims.

The group of AGs sent a letter to Meta demanding more transparency and accountability in how the company monitors, identifies, and removes these fraudulent ads. They argue that Meta has failed to implement adequate safeguards, allowing scammers to continue deceiving users at scale. Many of the ads falsely claim endorsement from recognizable figures, leading consumers to invest in cryptocurrency or financial ventures that ultimately turn out to be scams.

Letitia James emphasized that Meta has a responsibility to protect its users from exploitation and must invest more resources into preventing these deceptive practices. She also called for better user reporting tools and stronger penalties for accounts that repeatedly promote scams.

This coordinated effort highlights the growing concern among state regulators about the role of social media in enabling financial fraud. The attorneys general assert that Meta’s current advertising policies and content moderation systems are insufficient to curb the problem.

As online financial scams continue to rise, the pressure on tech platforms like Facebook to take proactive steps against fraud is mounting.