State AGs led by NY's Letitia James pressure Meta to clean up investment scams on Facebook

Core Viewpoint - A coalition of 42 state attorneys general is urging Meta to take stronger action against investment scams on its platforms, which exploit the images of well-known figures like Warren Buffett to defraud retail investors [1][5]. Group 1: Nature of the Scams - Criminals are bypassing Meta's automated and human review systems to post fraudulent ads, resulting in significant financial losses for retail investors [2]. - The scams often involve fake ads that promise access to investment opportunities linked to famous investors, leading users to join chat groups on WhatsApp where they are manipulated into participating in pump-and-dump schemes [2][3]. Group 2: Impact on Users - Thousands of Facebook users have reportedly lost hundreds of millions of dollars due to these scams, highlighting the urgent need for Meta to enhance its ad review processes [5]. - The ongoing nature of these scams persists even after being reported to Meta, indicating a systemic issue within the company's oversight mechanisms [2]. Group 3: Broader Context - Meta is facing challenges in controlling the proliferation of cyber scams across its platforms, which have been described as a "cornerstone of the internet fraud economy" [4]. - The issue is not limited to the U.S., as evidenced by a lawsuit from an Australian billionaire claiming that Meta's advertising algorithms have created and promoted false ads using his likeness [4].