Massive scams on Facebook

Investment Analysis Clubs Macro Economic Trends and Risks
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https://www.wsj.com/tech/meta-fraud-facebook-instagram-813363c8?mod=hp_lead_pos1

Meta Battles an ‘Epidemic of Scams’ as Criminals Flood Instagram and Facebook

Fake puppies and phony offers of mouthwatering bargains are often seeded by overseas crime networks; employees says company is reluctant to impede its advertising juggernaut

By Jeff Horwitz and Angel Au-Yeung, The Wall Street Journal, May 15, 2025

…
Meta Platforms, the parent company of Facebook and Instagram, is increasingly a cornerstone of the internet fraud economy, according to regulators, banks and internal documents reviewed by The Wall Street Journal.

The company accounted for nearly half of all reported scams on Zelle for JPMorgan Chase between the summers of 2023 and 2024, according to a person familiar with the service…

An internal analysis from 2022 described in company documents likewise found that 70% of newly active advertisers on the platform are promoting scams, illicit goods or “low quality” products…

But fed by the rise of cryptocurrencies, generative AI and vast overseas crime networks based out of Southeast Asia, the immensity of Meta’s scam problem is growing and has been regularly flagged by employees over the past several years.

Current and former employees say Meta is reluctant to add impediments for ad-buying clients who drove a 22% increase in its advertising business last year to over $160 billion. Even after users demonstrate a history of scamming, Meta balks at removing them…

A U.S. Institute for Peace report last year on such activity estimated organized scamming operations—often called “pig butchering” groups—comprise hundreds of thousands of people, many trafficked after falling for fraudulent social-media employment ads. Kept in prisonlike compounds, the workers are forced to work under threat of “extreme forms of torture and abuse.”… [end quote]

AI clones of people’s faces and voices can make scam posts more persuasive. Many of the scam offers are very tempting. With such huge scam organized criminal operations the impact could be considered Macro.

I guess the best way to protect ourselves from scams is to not respond to any offers on FB. If an offer seems good, go directly to the company’s web site to see if it’s legitimate.

Any other suggestions?
Wendy

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Dear Wendy,

Meta and Google.

I have spoken with my state rep. He has someone from my Senator’s office calling me.

My concern is memory drugs. People with problems are being advertised to before they watch videos on Youtube. The ads are for memory drugs. People having problems are being fleeced. Horrible.

If we make fraud laws tougher industry is worried. It involves criminal and civil liability as well.

Yes, it is overseas operators.

No, it does not stop there. We have domestic hackers doing these things and facing few legal challenges.

The recent no-nudity law has power over social media regardless of Section 230. This was not thought possible. The courts still have to rule on it.

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I wonder if e-commerce has spawned any kind of central clearing parties.

Funds go to central party and are not released until both parties are satisfied.

Just spitballing.

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That’s called escrow.

When I sold my 20-year-old Altima I listed the car on Autotrader. For a $99 fee (or 1% of the sales price, whichever is larger.) They will hold the title to the vehicle in escrow until the seller receives payment via the Autotrader app.

As it happened I sold the car to a neighbor and trusted her enough to accept a personal check, but otherwise I would have sold the car with Autotrader clearing the payment.

intercst

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Every single time I report a scam to facebook, a few hours later I receive a notification that they’ve determined it is within the rules. And it’s ridiculous, I report things that are CLEARLY scams - like $1500 laptops for $90, etc.

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They Paid $3,500 for Apple’s Vision Pro. A Year Later, It Still Hurts.

I’ve always considered Apple to be kind of a high-priced scam, like couture fashion.

free link:
https://www.wsj.com/tech/they-paid-3-500-for-apples-vision-pro-a-year-later-it-still-hurts-496de341?st=hB6yY1&reflink=desktopwebshare_permalink

intercst
(still “skim” focused)

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I my experience PayPal has been good at providing refunds for items that never ship, etc.

DB2

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I don’t, after being scammed once. ($29.95) I realized then that there is no protection, even from recognizable merchants or brands, because a scammer can use a stock photo and set up a payment scheme and be gone with the money before anyone realizes it.

If I ever see something that interests me I’ll go to a manufacturer website or more frequently Amazon to see if the product is being offered there. Most often it is, and for less to boot.

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So here’s an example. An add for a cordless paint sprayer from Saker just popped up on my FB feed, with a “SPECIAL DISCOUNT” if I order right away. $36.99.

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I went to Amazon. Identical product: $24.99

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But that may not be an example of a “scam”. These kinds of scams are when someone sells something at a price that is too good to be true and sure enough in the end doesn’t deliver that something, or delivers something else that is much inferior.

This is a case of simply having a higher price than can be had elsewhere and advertising it as a “buy now only” price. This is taking advantage of suckers that don’t price compare before buying. Sometimes they will add a few plastic parts that cost a nickel or so … and double the price from the already higher price! And this is a seller with a 98% rating.

Screenshot 2025-05-16 at 2.51.23 PM
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It’s quite possible that they are taking special advantage of facebook because of all the geezers (like us) on there that don’t know to ALWAYS price compare, or nowadays probably ask an AI to price compare for you.

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In the beginning, I thought that was the purpose of PayPal.

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Don’t believe much of it, and Block & Ban the creeps as needed… I Admin serious Groups, try to spot the scammers, creeps, delete any attempted sales carp, so far so good after many years…

Stay safe!

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I go to Amazon and then check TEMU to see if the same specs are 1/3 the Amazon price.

Since most of the stuff for sale on Amazon or in the aisles of Walmart comes from China, the odds are the exact same product is available on TEMU as long as you know what you’re looking for (i.e. Chinese brand or vendor.)

Minimize the Skim of vendor mark ups.

intercst

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I don’t think I’ve ever seen a single legitimate honest ad on Zuckerbergbook.

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Neither have I, but then I don’t see any ads thanks to F. B. Purity … fixes all kind of issues with FaceBook.

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