On Wednesday, September 9, 2026, MediaPost reported that Meta Platforms is facing a new class action lawsuit from three users who allege that advertisements on Facebook and Instagram led them to fraudulent cryptocurrency schemes.
The plaintiffs claim that these ads directed them to WhatsApp groups where scammers instructed them to transfer money or cryptocurrency to digital wallets. According to the complaint, when the plaintiffs attempted to withdraw their funds, they discovered the balances were illusory, and their deposited money was gone.
The lawsuit further contends that Meta’s generative artificial intelligence tools have amplified the effectiveness of these fraudulent advertisements by creating numerous variations optimized to engage vulnerable users. The plaintiffs assert that Meta is aware or should be aware that its AI tools contribute to the creation and optimization of deceptive ads, and that its algorithms specifically target vulnerable consumers with misleading advertisements.
The complaint also alleges that Meta’s business practices deceptively lead consumers to believe that fraudulent ads are removed from its platforms.
This is not the first time Meta has faced legal challenges over scam ads. The report notes a similar lawsuit filed last year, where individuals claimed to have lost money due to Facebook ads that directed users to WhatsApp groups promoting pump-and-dump schemes. In that previous case, plaintiffs also alleged that scammers utilized Meta’s AI tools to create the fraudulent ads.
Meta had previously argued that Section 230 of the Communications Decency Act protected it from liability for illegal activities by third-party advertisers. However, in the prior case, a district court judge rejected Meta’s bid for dismissal, ruling that if the allegations were true, Meta’s significant role in creating the ads would override Section 230 protections. The judge later dismissed that case, stating that the claims were superseded by federal securities laws.
Source: MediaPost
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