Senators Demand Federal Investigation into Meta‘s Handling of Scam Ads on Facebook and Instagram
Washington D.C.- November 25, 2025 – U.S. Senators Josh Hawley (R-Missouri) and Richard Blumenthal (D-Connecticut) have called on federal agencies to investigate Meta’s role in facilitating and profiting from illicit advertising on Facebook and Instagram. in a letter sent today, the senators urged vigorous enforcement action against the company, including the potential for financial penalties and a cessation of the problematic advertising practices.
The call for investigation follows a recent Reuters report detailing internal Meta documents from late 2024. Thes documents reportedly indicated the company generated approximately $16 billion that year from advertising deemed illicit.One document specifically noted Meta earned $3.5 billion in revenue from “higher risk” scam ads every six months.Further,the documents suggested Meta’s anti-fraud rules were not consistently applied to ads that both regulators and company staff believed “violated the spirit” of its policies against scam advertising.
“If the reporting is accurate, pursue vigorous enforcement action where appropriate” to force Meta to disgorge profits, pay penalties and agree to cease running such advertisements,” Hawley and Blumenthal wrote in their letter to the federal agencies.
Meta responded to the Reuters report by stating it had reduced user reports of scams by 58% over the last eighteen months. However, the senators expressed skepticism regarding the company’s efforts.
“The Hawley-Blumenthal letter makes claims that are exaggerated and wrong,” Meta spokesman Andy Stone said. “We aggressively fight fraud and scams because people on our platforms don’t want this content, legitimate advertisers don’t want it and we don’t want it either.”
The senators pointed to Meta’s publicly accessible “ad library” as evidence of ongoing issues, stating that a recent review revealed “clearly identifiable advertisements for illicit gambling, payment scams, crypto scams, AI deepfake sex services, and fake offers of federal benefits.”
According to Reuters reporting cited in the letter, Meta itself estimated its platforms were involved in a third of all scams in the U.S. Given that the Federal Trade Commission (FTC) estimates Americans lost $158.3 billion to scams last year,the senators suggest Meta could be responsible for over $50 billion in consumer loss.The letter alleges Meta has “consciously chosen to accept ads that promote fraudulent activities.”
The senators also highlighted concerns about staffing cuts within Meta’s safety teams, including those responsible for FTC-mandated reviews, while simultaneously investing heavily in generative AI projects. They specifically cited examples of fraudulent advertisements impersonating U.S. government entities and political figures, including a fake ad falsely claiming President Donald Trump was offering $1,000 to recipients of food assistance.
The letter further noted that the beneficiaries of these scams are often located in countries including China, Sri Lanka, vietnam and the Philippines.
Published November 25, 2025 11:56 am IST.
