42 State AGs Demand Action: Meta Must Combat Facebook Investment Scams!
A coalition of 42 state attorneys general is rallying against Meta Platforms, urging the tech giant to take decisive action against rampant investment scams plaguing Facebook. These scams not only deceive users but also exploit the images of high-profile investors including Warren Buffett, Elon Musk, and Cathie Wood, according to New York Attorney General Letitia James. She emphasized that fraudulent ads are slipping through the cracks of Meta’s automated and human review systems, leading to crippling financial losses for unsuspecting retail investors.
The Scammer’s Playground: Facebook
These deceptive ads direct users to WhatsApp chat groups, where they become targets of alleged pump-and-dump schemes. In these nefarious practices, criminals surge the prices of thinly traded stocks, profiting off the misfortunes of oblivious investors. Reports from The Wall Street Journal underscore the severity of the issue, labeling Meta’s platforms as a “cornerstone of the internet fraud economy.” This is not just a local problem; a global outcry is evident, as an Australian billionaire is currently suing Meta for allegedly permitting false ads featuring his likeness through its AI-driven ad system.
In response, Attorney General James, alongside a bipartisan group from states such as California, Connecticut, Georgia, Massachusetts, Michigan, New Jersey, and Pennsylvania, is urging Meta to significantly enhance its ad monitoring protocols, particularly through increased human scrutiny. They sternly warned that if Meta persists in allowing these scams to flourish, the company should reconsider running any investment-related advertisements. “Thousands of Facebook users have lost hundreds of millions of dollars to these scams,” James stated, stressing the need for immediate action and advising the public to remain vigilant with investment ads on social media.
Is Meta a Smart Investment Choice?
From Wall Street’s perspective, analysts are optimistic about Meta’s future, giving it a Strong Buy consensus rating based on 42 Buys, three Holds, and just one Sell over the past three months. As per analysts, the average price target for META stands at an impressive $698.07 per share, suggesting the stock is currently undervalued.
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