Bank Leumi Sues Meta for 26 Million Shekels Over Fraudulent Ads on Facebook and Instagram

Bank Leumi has filed a lawsuit against Meta, the operator of Facebook and Instagram, in the Tel Aviv District Court seeking approximately 26 million shekels in damages. The suit accuses Meta of systematically allowing the prolonged distribution of paid fraudulent advertisements impersonating the bank, which have caused financial harm to Bank Leumi's customers and the general public while generating significant profits for Meta. The complaint, submitted by attorneys Ofer Fleisher, Sivan Barash, and Yehonatan Shulman from Gornitzky & Co., alleges that Meta knowingly benefited from these illegitimate and harmful ads.

Bank Leumi highlights a sharp increase in such fraudulent ads during July 2026, with 243 cases identified that month alone, more than 100 cases above the total for the first half of the year. This represents a several-hundred-percent rise compared to previous months. The problem persisted into early August, though the bank claims it managed to prevent damages totaling about 9.2 million shekels through its own interventions. The lawsuit accuses Meta of deliberate and ongoing failure to address the issue despite being fully aware of it and receiving repeated warnings.

According to the bank, Meta possesses the necessary tools and data to identify most fraudulent ads before they go live, as these ads are clearly distinguishable from legitimate bank advertisements. The bank contends that Meta’s response has been partial, delayed, and insufficient, effectively allowing the continued spread of harmful ads while profiting from paid advertising services. Bank Leumi claims it has had to bear the burden of detecting and reporting these ads and absorbing the resulting financial and reputational damage alone, without adequate cooperation from Meta.

The lawsuit underscores that Meta’s negligence has left Bank Leumi and its customers vulnerable to ongoing scams, with Meta prioritizing financial gain over preventing fraud. The case is now pending in the Tel Aviv District Court, marking a significant legal challenge against a major social media platform over online fraud facilitation.