Bank Leumi CEO Rallies Public Against Facebook's Alleged Profit from Scams
Translated & summarized from Calcalist by baba
Bank Leumi CEO Hanan Friedman is leading a public campaign against Meta (Facebook), accusing the social media giant of profiting from fraudulent ads that impersonate individuals and financial institutions, causing significant financial harm to Israelis. The bank filed a NIS 26.6 million lawsuit against Meta in August and is now encouraging other victims to join their legal battle. Friedman argues that Meta intentionally allows these scams to continue because they generate substantial advertising revenue, calling it a deliberate business strategy rather than an oversight. The bank seeks stricter verification measures and pre-screening of ads from Meta.
The story in 6 lines · by baba
- Bank Leumi CEO Hanan Friedman is rallying public support against Meta, accusing it of profiting from scams.
- Bank Leumi filed a NIS 26.6 million lawsuit against Meta in August over fraudulent ads.
- Friedman claims Meta intentionally allows scams, calling it a 'feature, not a bug' for profit.
- Journalist Shaul Amsterdamski and author Tamir Mndovsky are among those whose identities were impersonated.
- The bank seeks Meta to implement stricter advertiser verification and pre-screening of ads.
- Bank Leumi estimates fraud from these ads reached NIS 140 million, with NIS 84 million prevented.
Hanan Friedman, CEO of Bank Leumi, is intensifying his campaign against Meta (Facebook), urging victims of online scams and impersonations to join the fight. Bank Leumi filed a NIS 26.6 million lawsuit against Meta in August, alleging the platform allows fraudulent sponsored ads impersonating the bank, causing financial damage to its customers. Friedman has now expanded his efforts to the social media platform X, accusing Meta of profiting from these scams and calling for public support.
Friedman stated that Facebook "rakes in a huge fortune from publishing impersonating ads that trap countless innocent Israelis." He believes the company intentionally allows these ads because they generate significant revenue, calling it a "feature, not a bug." This public stance was prompted by a complaint from journalist Shaul Amsterdamski, whose name and likeness were used in ads promoting fake stock investments. Amsterdamski noted that despite repeated reports to Facebook, the impersonations persist.
Amsterdamski engaged with Friedman on X, and the bank CEO expressed willingness to include victims like the journalist in the lawsuit, emphasizing that Facebook profits from this "scamming method." The case is being heard by Judge Noa Grossman at the Tel Aviv District Court. Friedman also invited anyone who can contribute to the fight against Facebook's alleged facilitation of scams to join, calling the company's approach "scams for the lazy" because it doesn't actively prevent them, thus protecting its advertising revenue.
Other individuals have also joined the public discourse. Tamir Mndovsky, author of "Investments for the Lazy," reported his name being used in similar scams and sought to join the lawsuit. Former Knesset member Avir Kara also highlighted a Facebook ad impersonating Bank Leumi for a ticket giveaway, further illustrating the issue. Friedman shared Kara's case, reiterating that "everyone needs to join the fight against Facebook's scams" as the company allegedly profits immensely from defrauding Israelis.
The lawsuit details that Meta allegedly approves and promotes paid ads, some with clear warning signs like unauthorized use of bank trademarks and unverified advertiser accounts. These ads offer false benefits, luring users into revealing login details and verification codes to compromise their accounts. Bank Leumi's prior legal notice to Meta in June claimed that fraud from these ads reached approximately NIS 140 million, of which the bank managed to prevent NIS 84 million. The NIS 26.6 million lawsuit includes NIS 3.9 million reimbursed to customers, NIS 17.7 million for operational costs, and NIS 5 million for reputational damage.
Bank Leumi is demanding Meta implement stricter advertiser verification, flag ads from unverified accounts, and allow the bank to pre-screen ads using its name. While settlement talks were reported in September, their current status is unclear. This campaign also marks a significant step in Friedman's increased public engagement on X, where he recently solicited public feedback on bank services, receiving widespread response.
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