Meta has sued the people and groups behind three scam operations that used images and deepfakes of celebrities to lure users to scam websites. According to the company, the three entities were based in China and Brazil and targeted people in the US, Japan and other countries. The ads promoted fraudulent investment schemes and fake health products.

Meta said that it had filed lawsuits against several people in Brazil who promoted fake or unapproved healthcare products and online courses promoting them. The company also sued a China-based entity it says used ads featuring celebrities "as part of a larger fraud scheme that lured people into joining so-called investment groups." The company didn't provide details on how many ads these groups had run on Facebook, how many social media users had seen or interacted with the ads or how long the scammers had been operating on the platform.

So-called "celeb bait" ads have been a long-running issue for the company. Engadget has previously documented celeb bait scams on Facebook, including ones that frequently use Elon Musk and Fox News personalities to hawk fake cures for diabetes. The Oversight Board has also criticized the company for not doing enough to combat such scams. In its update, Meta says that "because scam ads are designed to look real, they’re not always easy to detect." The company also noted that it has now enrolled "more than 500,000" celebrities and public figures into its facial recognition system that's meant to automatically detect scam ads using the faces of famous people. 

Meta's handling of scammy advertisers has come under increased scrutiny in recent months after Reuters reported that researchers at the company at one point estimated that as much as 10 percent of its ad revenue could be coming from scams and banned products. The fact that Meta has made billions of dollars from problematic advertisers has also caused the company to be slow to take action against repeat offenders.

In addition to the groups behind the celeb bait ads, Meta says that it's upgraded its ability to detect scam ads that use cloaking, which has at times hindered its internal review systems. The company also sued a Vietnam-based advertiser it says used scam ads to hawk "deeply discounted items from well-known brands," including Longchamp.

Meta also took legal action against eight former "Meta Business Partners," who promoted services that would "un-ban" or other "account restoration services." The company says it will "consider taking additional legal action, including litigation, if they don’t comply" with cease and desist orders.

Update, February 26, 2026, 1:16PM PT: This story was updated to specify that Meta’s internal estimates around ad revenue included scams and banned products.

This article originally appeared on Engadget at https://www.engadget.com/social-media/meta-sues-advertisers-in-brazil-and-china-over-celeb-bait-scams-190000268.html?src=rss

©

New York Attorney General Letitia James has accused Valve of promoting illegal gambling through its video games in a lawsuit filed by her office. According to the AG’s announcement, her office conducted an investigation and had concluded that Valve enabled gambling by enticing users to pay for a chance at rare items from loot boxes in Counter-Strike 2, Team Fortress 2 and Dota 2. In the lawsuit, the New York AG stressed that Valve’s loot boxes are “particularly pernicious,” because the games are popular among children and teenagers.

The lawsuit described the loot box model, which requires a player to open a mystery chest for the possibility of winning rare items, as “quintessential gambling.” It argued that people introduced to gambling at an early age are at a significantly higher risk of developing gambling addictions later on, based on research. In addition, it explained that gambling is mostly illegal in New York.

Players have to pay for chests or boxes and the keys to be able to open them in Valve’s games, and the company has reportedly sold billions of dollars’ worth of keys for Counter-Strike alone. The lawsuit said that Valve has made tens of millions of dollars in fees from the sale of virtual items on the Steam Community Market, as well. In addition to being able to sell items on Steam for funds directly credited to their Steam Wallet, players can also sell on third-party marketplaces for cash.

According to James’ office, Valve facilitates and even assists third-party marketplaces in their operations, based on its investigation. Engadget has asked Valve for a statement about the lawsuit, but we have yet to hear back. However, the company previously denied being involved with third-party marketplaces that allow the sales of its game items for real-world money. In a response to an inquiry by the Danish Gambling Authority, Valve explained that those third-party websites create sock puppet accounts to sell and receive items on Steam in exchange for cash. “[T]his behavior is in violation of our terms of service,” Valve said.

The lawsuit also pointed out that there’s a huge market for Counter-Strike skins and referenced a Bloomberg article from 2025, which reported that the market for those skins had already surpassed $4.3 billion. As an example of in-game items sold for real money, it cited the sale of a Counter-Strike 2 AK-47 skin in 2024 for $1 million. The Attorney General’s Office wants the court to stop Valve from violating New York laws, to give up money it allegedly earned from illegal activities and to pay a fine three times what it allegedly earned from illegal business practices.

This article originally appeared on Engadget at https://www.engadget.com/gaming/ny-ag-valves-loot-boxes-can-get-kids-hooked-on-gambling-122503556.html?src=rss

©