Account theft and embezzlement of the state budget: Meta is accused of promoting cybercrime

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Prosecutors have uncovered a scheme to earn Meta money by stealing business accounts.

Attorneys General of 41 US states have addressed Meta*, highlighting the sharp increase in complaints about hijacking of Facebook and Instagram user accounts across the country and stating the need for "immediate action" to counter malicious activity.

Initiated by New York Attorney General Letitia James, the coalition points to a steady increase in complaints about account hijacking, which entails significant losses for the state budget, since many stolen accounts are also associated with financial crimes that are allegedly directly beneficial to Meta.

The letter, addressed to Meta chief legal officer Jennifer Newstead, says that the prosecutor's office has received numerous complaints about fraudsters illegally debiting thousands of dollars from linked credit cards. In addition, there are reports of cybercriminals buying ads to place on Meta platforms.

Law enforcement officers also added that they refuse to "perform the functions of the company's support service." Appropriate investments in response and prevention measures are mandatory, as the prosecutors noted in the letter.

Meta responded by saying that it invests heavily in support and verification teams, uses specialized tools to identify compromised accounts and other fraudulent activities, shares tips and tools to protect users, cooperates with law enforcement agencies, and takes legal action.

Victims of account theft complain about the lack of Meta response. In many cases, users report that the company is not taking any action. Some say that Meta encourages users to report similar issues, but never responds, leaving them unable to restore their accounts or related businesses.

One of the victims of the $500 hack and scam complained that her ability to communicate with her customer base was completely compromised, and that Meta never responded to the report she submitted, even though the user followed the company's instructions to get help. The Attorneys General noted that accounts hijacked for advertising on Facebook often violate the platform's rules, as a result of which they can be permanently blocked, which affects the business even worse.

Data from the New York City Attorney's Office shows a tenfold increase in complaints between 2019 and 2023 — from 73 complaints to more than 780. In January 2023 alone, more than 128 complaints were received. Other states also recorded similar spikes in complaints over the period, with increases of 270% in Pennsylvania, 330% in North Carolina, and 740% in Vermont.

The letter notes that while officials can't be "sure of any connection," the sharp increase in complaints occurred around the same time that Meta experienced layoffs affecting about 11,000 employees in November 2022, which represented about 13% of the total staff at that time..

Meta is encouraged not only to improve its account protection tools, but also to strengthen its response to user complaints in order to ensure their safety and security in the digital space.
 
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