Facebook Sues Hong Kong-Based Company Alleging Ad Fraud

Facebook said it has issued more than $4 million in refunds to customers whose accounts were used by ILikeAd to run unauthorised ads.

Advertisement
By Reuters | Updated: 12 December 2019 08:45 IST
Highlights
  • ILikeAd used malware to bait people into clicking on bogus links
  • It was aimed at running ads for counterfeit goods, diet pills
  • Facebook said this enabled the defendants to hijack users' ad accounts

Facebook said that it has notified thousands of users that their accounts may have been compromised.

Facebook on Thursday sued a Hong Kong company that it said used malware to bait people into clicking on celebrities' photos and bogus advertising links, so it could run ads for counterfeit goods, diet pills and male enhancement supplements. The social media company accused ILikeAd Media International Co software developer Chen Xiao Cong and marketer Huang Tao of using improper "celeb bait" and "cloaking" practices since at least 2016.

Facebook said this enabled the defendants to hijack users' ad accounts, known as "account take over fraud," violating its terms of service and advertising policies.

None of the defendants could immediately be reached for comment. The complaint filed in the federal court in San Francisco seeks unspecified damages and a Facebook ban.

Advertisement

Facebook said this kind of lawsuit is rare, and that it has since April notified hundreds of thousands of users that their accounts may have been compromised.

Advertisement

The Menlo Park, California-based company said it has also issued more than $4 million in refunds to customers whose accounts were used by ILikeAd to run unauthorised ads.

"Cloaking" involves disguising the content of a link by displaying one version of that content to Facebook and another version to users.

Advertisement

"Creating real world consequences for those who deceive users and engage in cloaking schemes is important in maintaining the integrity," Jessica Romero, Facebook's director of platform enforcement and litigation, said in a statement.

According to the complaint, ILikeAd promoted itself as a "one-stop comprehensive solution to advertisers" hoping to market their wares on Facebook.

Advertisement

The case is Facebook Inc v ILikeAd International Co et al, US District Court, Northern District of California, No. 19-07971.

© Thomson Reuters 2019

 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Further reading: Facebook, ILikeAd
Advertisement

Related Stories

Popular Mobile Brands
  1. Bridgerton Season 4 Premieres in Two Parts on Netflix: See Details
  2. OnePlus 15R Storage Options Leaked: Here's How Much It Might Cost in India
  3. Scientists Track Glowing Green Comet 3I/ATLAS as It Nears Earth
  4. Jio Launches Happy New Year 2026 Prepaid Plans: Check Price, Benefits
  5. Earth's Deep Interior May Have Hidden an Ancient Ocean of Water
  6. All the Details About Kunal Khemu's Comedy Drama 'Single Papa'
  1. OnePlus 15R Price in India, Storage Configurations Leaked Days Before Launch in India
  2. Reliance Jio Launches Happy New Year 2026 Plans With Unlimited 5G Access, Google Gemini Pro
  3. Early Earth’s Deep Mantle May Have Held More Water Than Previously Believed, Study Finds
  4. Nandamuri Balakrishna's Akhanda 2 Arrives on OTT in 2026: When, Where to Watch the Film Online?
  5. Single Papa Now Streaming on OTT: All the Details About Kunal Khemu’s New Comedy Drama Series
  6. Scientists Study Ancient Interstellar Comet 3I/ATLAS, Seeking Clues to Early Star System Formation
  7. Bridgerton Season 4 to Release in Two Parts on OTT: When and Where to Watch It Online?
  8. Spider-Like Scar on Jupiter’s Moon Europa Could Indicate Subsurface Salty Water
  9. Wake Up Dead Man: A Knives Out Mystery Now Streaming on Netflix: Everything You Need to Know
  10. Secret Rain Pattern May Have Driven Long Spells of Dry and Wetter Periods Across Horn of Africa: Study
Gadgets 360 is available in
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2025. All rights reserved.