Fraud in Online Ads – The Global Picture

Online fraud is one of the fastest-growing risks across major platforms. Scammers exploit weaknesses in advertising systems to bypass moderation and reach millions of people in a matter of hours.

• ‍Common tactics: fake news websites (dopplegängers), deepfake celebrity endorsements, emotional appeals mimicking “government-backed guarantees,” and flooding ad systems with thousands of accounts, short running time of ads and small reach‍
• Celebrity misuse: figures like Elon Musk, Richard Branson, and Bill Gates are frequently used in fraudulent investment schemes. Deepfakes or fabricated quotes give scams false credibility and encourage trust among unsuspecting users.
• ‍Economic scale: fake crypto platforms, recovery scams, and call centers impersonating banks generate billions in global losses. Platforms still profit from these ads before they’re removed.‍
• Algorithmic moderation is insufficient: scammers constantly rotate visuals, domains, and text to slip past filters. Automated systems are always one step behind.

Platform Transparency Comparison (DSA Requirements – Article 39)

‍

* Meta’s “Partnership Ads” exist but cannot be systematically searched.

What the DSA Requires – And How Platforms Compare

• Meta (Facebook & Instagram)
  
  • Strengths: impressions down to the last hour, demographic data, inclusion of partner ads.
    
  • Benefit: enables quick tracing of how many people were exposed to a scam and who was targeted.
    
    
• TikTok
  
  • Weaknesses: delays, no demographics, missing Spark Ads.
    
  • Risk: short fraud campaigns run their course before being visible; influencer ads remain hidden.
    
    
• Google / YouTube
  
  • Major gap: impression data delayed by 90 days
    
  • Impact: scams vanish in days, but data arrives months later — too late for intervention with unknown size
    
    
• X (Twitter)
  
  • Situation: library exists in name only, lacking APIs, search, or timely data.
    
  • Impact: oversight is impossible.
    
    
• Systemic risk: partner/influencer ads
  
  • Paid influencer formats often escape ad libraries.
    
  • Risk: covert advertising and propaganda spread unchecked under the disguise of organic content.
    
    

Why Transparent Ads Are Critical

Ad transparency isn’t just about meeting the Digital Services Act (DSA). It is a frontline defense against fraud and hidden influence.

• Real-time visibility: stops fraud while it’s live, not months later.
  
• Searchable libraries: ensure fraudulent campaigns can be traced and held accountable.
  
• Demographics: reveal which groups are targeted, protecting vulnerable users.
  
• Influencer coverage: ensures that covert campaigns aren’t disguised as authentic voices.
  

Without transparency, scammers enjoy free rein — flooding platforms with fake investments, deepfakes, or political propaganda before vanishing without a trace. With transparency, platforms, regulators, and watchdogs can warn the public faster, block fraud more effectively, and hold advertisers accountable.

Transparent ads protect people’s money, trust, and democracy worldwide.