Advocacy groups have urged Congress to investigate claims that the tech giant benefited from fraudulent campaigns aimed at seniors
Several US retirement advocacy groups have urged Congress to investigate Meta, accusing the tech giant of allowing fraudulent ads targeting seniors to proliferate while profiting from the campaigns, Politico reported on Thursday, citing a letter sent to leaders of the House Homeland Security Committee.
Meta, the parent company of Facebook, Instagram, WhatsApp, and Threads, has faced mounting scrutiny in recent years over issues ranging from misinformation and online fraud to data privacy, antitrust concerns, and the impact of its platforms on young users’ mental health.
The groups – including the Alliance for Retired Americans, the American Postal Workers Union Retirees, and the American Federation of Teachers – alleged that Meta has failed to act quickly enough against fraudulent advertising campaigns, exposing seniors to significant financial risks.
“Fraudulent Medicare ads have proliferated on Meta platforms and too many seniors are getting scammed while Meta profits,” Richard Fiesta, executive director of the Alliance for Retired Americans, told Politico. “We are calling on Congress to investigate how these scams are allowed to spread, what Meta knew about them, and why stronger protections are not in place. Seniors should not be left vulnerable while scammers and tech companies cash in.”
A Meta spokesperson rejected the criticism, telling the outlet that the company actively combats increasingly sophisticated scams and works closely with law enforcement agencies to identify and dismantle criminal networks.
The latest allegations add to a growing list of challenges facing the company. Earlier this year, a bipartisan group of lawmakers pressed Meta CEO Mark Zuckerberg over the effectiveness of the firm’s anti-fraud measures. In November, lawmakers also called for a federal investigation after a Reuters report cited internal documents suggesting fraudulent advertising could account for roughly 10% of Meta’s 2024 revenue.
The company continues to face regulatory pressure worldwide. In Europe, Meta is contesting a €797 million ($915 million) antitrust fine while also dealing with ongoing investigations related to competition, privacy, and digital advertising practices.
In Russia, Meta has been designated an extremist organization.
6 thoughts on “Meta accused of profiting from scams targeting US retirees”
915 million. The real figures are likely much higher.
915 million. The real figures are likely much higher.
So the bottom line is the company continues to face regulatory pressure worldwide. Wonder how this will land.
The fact that the company continues to face regulatory pressure worldwide really puts things into perspective.
In other words the company continues to face regulatory pressure worldwide. Curious to see how this develops.
In other words the latest allegations add to a growing list of challenges facing the company. Curious to see how this develops.
The detail about the latest allegations add to a growing list of challenges facing the company is something people should sit with.