Meta Sues Advertisers Over Alleged Celebrity Impersonation Scams

Meta is suing advertisers who have allegedly impersonated celebrities to defraud consumers.

The tech giant announced Thursday (Feb. 26) that it had taken “technical enforcement actions” against the accused scammers, such as suspending their payment methods, blocking the domain names for their websites and disabling their accounts.

“Today’s lawsuits and our ongoing efforts to combat scams send a clear message: those who seek to exploit others on our platforms will be held accountable,” Meta wrote on its blog.

According to the post, scammers routinely misuse images of public figures like celebrities to dupe people into engaging with ads that lead to scam websites. These sites often ask people to give them their personal information or send money.

“Of course, celebrities are featured in many legitimate ads,” Meta added. “But because scam ads are designed to look real, they’re not always easy to detect. This scheme, referred to as ‘celeb bait,’ undermines people’s trust and violates our policies.

The defendants in Meta’s lawsuits include makers of healthcare products in Brazil and a company involved in an alleged investment fraud scheme in China. Meta said it has developed protections for celebrities whose images are repeatedly used in these scams, and has protected the images of more than 500,000 celebrities and public figures worldwide.

Meta’s actions come as lawmakers are calling on online platforms to do more to stop scammers. For example, a bill introduced earlier this month in the U.S. Senate would require platforms to take “reasonable steps” to stop fraudulent and deceptive ads.

A press release from the bill’s sponsors—Sen. Ruben Gallego, D-Ariz., and Sen. Bernie Moreno, R-Ohio—referenced a November report by Reuters that said fraudulent online ads cost Americans billions of dollars per year.

The same report included a review of leaked internal documents from Meta which projected that roughly 10% of its 2024 revenue, or $16 billion, came from ads for scams, illegal goods and other prohibited content.

Andy Stone, Met’s vice president of communications, told Reuters at the time that the documents offered a “selective view that distorts Meta’s approach to fraud and scams.”

Research by PYMNTS Intelligence has shown that 16% of scam victims were reached by fraudsters via social media. Another 8% said the fraudsters used a digital marketplace, while 7% reported clicking a link that ended up being fraudulent.