NASHVILLE, Tenn. (WTVF) — If you spend any time online, you've probably seen those ads that sound and look too good to be true. It turns out, that “easy money” or “rapid weight loss” ad in your social feed may actually be a scam.
A recent Reuters investigation alleges that Meta, the parent company of Facebook and Instagram, earned billions from fraudulent ads, leaving consumers on the hook -- including an increasing number of young people. And as it turns out, it doesn't look like the problem is going away.
Thomas in Utah had his credit card information stolen after buying — but never receiving — a product advertised on Instagram.
The items Theresa from Nebraska bought through a Facebook ad were not at all like the ones in their photos.
Consumer Reports says stories like these, submitted to its website, are becoming more common.
“People reached out to us— ‘Yeah, I saw this ad on Facebook. Seemed too good to be true.’ And guess what? It was,” said Justin Brookman.
Reuters says its investigation found that a large number of ads on Meta’s social media sites were scams served up to users by Meta’s algorithm.
“We always knew there were some fraudulent ads there, but they did a deep dive and said that up to 10 percent of the company's global revenue was coming from ads for scams or for other illegal activity,” said Brookman.
According to Reuters, Meta was aware of the problem — but undercut efforts to stop it — while projecting roughly $16 billion in earnings from scam ads.
In a statement to Consumer Reports, Meta said, “We aggressively fight fraud and scams,” and said the documents Reuters relied on, “present a selective view that distorts Meta’s approach to fraud.”
In response to claims that 10 percent of its revenue was generated by scam ads, Meta says, “that number was based on a rough estimate, and subsequent audits found many of the ads were not violating its terms and conditions.”
Short of swearing off social media altogether, Consumer Reports says there are steps families can take!
Be skeptical. Treat ads for unbelievable deals with extreme caution.
And if an ad looks suspicious, report it!
You can report ads on Facebook and Instagram immediately by clicking the three dots in the top right corner. And if you're a parent, be sure to share these tips with your kids, especially your teens to help keep them safe online.
Do you have more information about this story? You can email me at jennifer.kraus@newschannel5.com.
During a week when it seems that frustration is the prevailing sentiment felt across middle Tennessee amid ongoing power outages, Forrest Sanders brings us a story of love, faithfulness and a remarkable family... plus, a little humor on the side. Enjoy!
- Carrie Sharp
