Summary
We analysed the scale and structure of fraudulent and problematic advertising shown to Austrian users on Meta’s platforms Facebook and Instagram and identified eight major fraud schemes: subscription scams, investment fraud, loan fraud, job fraud, dubious dietary supplements, ghost stores, fake shops, and online gambling. The top three frau schemes are shown in the table below. Our findings show that fraudulent advertising on Meta is not limited to isolated cases, but forms a broader ecosystem with distinct strategies, infrastructures, and audience patterns.
| Fraud Scheme | Number of Ads | EU Reach | Austria Reach |
|---|---|---|---|
| Online Gambling | 448,699 | 620,572,304 | 64,790,612 |
| Investment Fraud | 83,216 | 126,665,013 | 21,961,476 |
| Fake Shops (Brand Imitation) | 28,276 | 65,931,501 | 2,024,487 |
| Total | 634,041 | 1,008,318,194 | 123,226,327 |
Our qualitative analysis shows recurring manipulation strategies across schemes. These include deceptive design, the deliberate creation of curiosity gaps, the systematic abuse of trust anchors such as public figures, brands, and institutions, and the exploitation of situational vulnerability. Rather than relying mainly on explicit demographic targeting, many of the advertisements are designed to reach people in specific vulnerable situations, such as financial distress, health concerns, or job seeking. In some areas, the study also documents the use of AI-generated content and deepfakes, as well as shifts towards less transparent infrastructures such as private messenger channels.
The study shows both the value and the limits of ad transparency tools for enforcement. On the one hand, the Meta Ad Library makes evidence-based documentation possible. On the other hand, we document structural weaknesses:
- opaque payer information,
- ads that later disappear from the repository,
- new advertisements being placed under supposedly disabled Page IDs, and
- cases in which relevant ads cannot be found through text search even though they exist in the library.
The study shows that platform advertising systems can be abused across multiple fraud schemes and at very large scale, while existing mitigation and transparency measures remain insufficient.
Recommendations
Verify payer identities: Meta should verify the identities of individuals and entities listed as payers in advertisements, for example through requesting personal or company documentation.
Ensure full and long-term searchability of ads: Meta should ensure that advertisements remain retrievable in the Ad Library once documented - including after removal, under previously deactivated Page IDs, and across all versions of dynamic ad campaigns.
Recognize and act on the systemic risk: Meta should treat fraudulent advertising as a systemic risk under Article 34 DSA.
Funded by KommAustria.
This study was funded by KommAustria.
