Three Facebook and Instagram users have sued Meta in San Francisco federal court, alleging the company helped crypto scammers find their marks, MediaPost's Wendy Davis reported.
The class action singles out Meta's generative AI tools, which the plaintiffs say "have enhanced the effectiveness of fraudulent advertisements by generating hundreds of variations which are optimized to drive engagement by vulnerable users." Meta's algorithms then steer those pitches at the people most likely to fall for them, the suit contends.
The three plaintiffs, from Florida, Georgia and Illinois, say ads on the two platforms funneled them into WhatsApp groups where scammers ran fake crypto investment schemes and took their money.
A 2025 case made a similar argument about scammers using Meta's AI tools. It survived a Section 230 challenge before being dismissed on the grounds that federal securities law preempted the claims.