Buffett’s Face, Empty Pockets: Meta Faces AG Heat Over $100M Scam

NEW YORK – Facebook isn’t just a place for baby pictures and political arguments anymore. It’s a hunting ground for scammers, and New York Attorney General Letitia James is calling Meta out. A bipartisan coalition of 42 Attorneys General are demanding the social media giant tighten its ad review process after reports surfaced of widespread investment fraud targeting vulnerable users. The damage? Hundreds of millions of dollars lost to classic pump-and-dump schemes.

The grift is simple, but effective. Fraudulent ads, brazenly featuring the likenesses of financial titans like Warren Buffett, Elon Musk, and CNBC’s Andrew Sorkin – all without their knowledge or consent – promise astronomical returns on investments. One victim, a New Yorker, reportedly lost over $100,000 after clicking on an ad claiming affiliation with a well-known investment management firm. The ads lure users into WhatsApp groups where they’re bombarded with stock recommendations designed to artificially inflate prices before the scammers make off with the profits.

An investigator with the Office of the Attorney General infiltrated one of these WhatsApp groups. The operation revealed a sophisticated scheme, with scammers using deceptive tactics to build trust and pressure investors. The caller, claiming to be based in Arkansas, couldn’t identify the state’s capital when questioned, revealing a clear disconnect between the facade and reality. This isn’t some fly-by-night operation; it’s a coordinated effort preying on financial hopes and dreams.

Here’s how it works: Scammers recommend specific stocks, driving up demand and, consequently, the price. Once the price is sufficiently inflated, they “dump” their shares, pocketing a massive profit while leaving unsuspecting investors holding worthless stock. These “pump-and-dump” schemes are illegal and constitute securities fraud, but Meta’s current ad review system is proving woefully inadequate to stop them. The OAG reported submitting scam reports to Meta months ago, only to continue receiving similar fraudulent ads.

“Scammers are using Facebook ads to trick New Yorkers and others across the country into investing in fraudulent schemes,” said Attorney General James. “Thousands of Facebook users have lost hundreds of millions of dollars to these scams and Meta must do more to stop these fraudulent ads from running on its platforms. Today, I am leading a bipartisan coalition calling on Meta to step up its review of ads to stop these scams. I also urge all New Yorkers to be extra careful before putting their money in investments they see advertised on social media.”

The coalition is urging Meta to overhaul its advertising review practices, demanding enhanced advertiser diligence and more meaningful human review of investment-related advertisements. The Attorney Generals aren’t just asking nicely; they’re putting the pressure on Meta to protect its users from becoming the next victims in this high-tech swindle. This isn’t about catching a few bad actors; it’s about fixing a broken system that’s lining the pockets of criminals at the expense of hardworking Americans.