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

Bank Leumi filed a lawsuit on Tuesday at the Tel Aviv District Court against Meta, the owner of Facebook and Instagram, demanding approximately NIS 26 million. The bank accuses Meta of systematically enabling and profiting from fraudulent advertisements impersonating Bank Leumi on its platforms, despite repeated requests to stop the activity. According to the lawsuit, the problem has worsened significantly, with 243 cases of scam ads identified in July alone, more than double the total cases detected in the first half of 2026.

The bank claims Meta knowingly cooperates in defrauding its customers for financial gain, describing the situation as "absurd" since Meta profits while Bank Leumi and the public suffer financial harm. The lawsuit, filed by attorneys Ofer Fleisher, Sivan Barash, and Yehonatan Shulman from Gornitzky & Co., accuses Meta of deliberate and ongoing negligence in addressing the fraud. Bank Leumi states that Meta has the tools and information to identify most scam ads before they go live but fails to act effectively, forcing the bank to remove fraudulent ads on its own.

Examples submitted include ads impersonating not only Bank Leumi but also other well-known brands like Rami Levy and Shufersal. These ads lure users with fake prizes such as gift cards, smartwatches, and BMW i5 car raffles. The fraud extends beyond ads to phishing websites and fake apps mimicking Bank Leumi’s official services. Meta’s response is described as partial and insufficient, continuing to allow harmful ads while shifting the risks and damages onto the bank and its customers.

The lawsuit was prompted by a sharp increase in scam ads in July, with hundreds of percent growth compared to previous months, and the trend continuing into August. Bank Leumi estimates it prevented financial damage totaling around NIS 9.2 million during this period. This case follows recent reports of phishing campaigns involving fake ticket sales ads for singer Sarit Hadad, also linked to Bank Leumi’s name.