Advertising Fraud on Meta Platforms

This NRF issue brief examines the growing problem of advertising fraud on Meta platforms, particularly Facebook and Instagram, and its impact on retailers and consumers. Fraudsters exploit consumer trust by running fake ads that impersonate legitimate retailers and brands and redirect users to fraudulent websites designed to steal payment and personal information or sell counterfeit goods. The issue brief makes the case that Meta’s current safeguards — largely reliant on advertiser-reported takedowns — are reactive and ineffective.

The issue brief includes eight recommendations for Meta, including domain whitelisting, enhanced domain and payment risk scoring, broader use of beneficiary disclosure, increased use of AI tools for fraud detection, and greater information sharing with industry and law enforcement. NRF urges Meta to implement these recommendations and encourages policymakers to engage on these issues.