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. OTT Releases This Week: Thamma, Mrs Deshpande, Raat Akeli Hai The Bansal Murders, and More
  2. Here's How Much The Redmi Note 15 5G Could Cost in India
  3. Here's When the Realme 16 Pro Series Will Launch in India
  4. Google's Pixel Upgrade Program Lets You Get the Latest Model Every Year
  5. A black hole is seen twisting spacetime, just as Einstein predicted
  6. Oppo Reno 15 Pro, Reno 15 Pro Max Global Variants Surface on Geekbench
  7. Oppo Reno 15 Pro Mini Tipped to Launch as First Compact Reno Smartphone
  8. Hubble spots a rare space collision near a nearby star
  9. YouTube Bans Popular Channels for Making Misleading AI-Generated Movie Trailers
  10. Dominic and The Ladies' Purse Streaming Now: Know Where to Watch It Online
  1. Astronomers Observe Black Hole Twisting Spacetime for the First Time, Confirming Einstein’s Theory
  2. Hubble Captures Rare Collision in Nearby Planetary System, Revealing Violent Planet Formation
  3. Scientists Rule Out Elusive Sterile Neutrino After 10-Year Hunt, Shaking Particle Physics
  4. NASA’s PUNCH Mission Provides First Continuous Views of Solar Eruptions Across Space
  5. Starlink Satellite Breaks Apart in Orbit, Begins Uncontrolled Fall Toward Earth After SpaceX Anomaly
  6. Four More Shots Please Final Season Out on Prime Video: Know Everything About This Show For One Last Time
  7. Godday Godday Chaa 2 Now Streaming Online: A Powerful Punjabi Comedy with Social Satire
  8. Pharma Streaming Now on JioHotstar: Everything You Need to Know About This Thought-Provoking Drama Online
  9. Mrs. Deshpande Now Streaming Online: A Powerful Drama Exploring Identity, Marriage and Strength
  10. Adobe Partners With Runway to Offer Firefly Users Early Access to Video Generation Models
Gadgets 360 is available in
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2025. All rights reserved.