Meta Sues Advertisers Over Celebrity Impersonation Scams, Disables Payment Methods
“Celeb bait” scams misuse the names, likenesses and purported endorsements of celebrities or public figures in social media ads to lure users into investing money or surrendering personal information. Such schemes not only violate image rights but also exploit Meta Platforms' advertising and payment systems to broaden their reach, making the platform's ability to disrupt payments and ad distribution central to fraud prevention.
Meta Platforms said on the Thursday cited in the report that it had sued advertisers suspected of running celebrity impersonation scam ads. It also took technical enforcement measures, including disabling related payment methods, blocking domains linked to the schemes and suspending advertising accounts. Meta has not disclosed the number of advertisers involved, the amount of money raised illegally or victims' losses, and did not provide the exact date of the Thursday announcement.
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The history behind this eventMeta Faces $300 Million Lawsuit Over Scam Ads Impersonating Bank of America Executive
Scammers used Meta’s Facebook and Instagram platforms to run fraudulent stock-trading advertisements impersonating Savita Subramanian, Bank of America’s head of U.S. equity and quantitative strategy. Investors claim losses exceeding $300 million, and the case is also testing whether social media platforms can claim immunity under Section 230 of the Communications Decency Act.
On March 24, 2026, the U.S. District Court for the Northern District of California ruled that the plaintiffs had sufficiently alleged that Meta’s generative AI advertising tools materially contributed to creating the content, meaning Section 230 did not provide blanket protection. Meta failed to have the case dismissed and must continue facing claims including aiding fraud and negligence. The case drew renewed attention on June 11.
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