Bank Leumi Sues Meta for 26.6 Million Shekels Over Systematic Phishing Ads

Bank Leumi has filed a significant lawsuit against Meta, the operator of Facebook and Instagram, demanding 26.6 million shekels in damages. The lawsuit, submitted to the Tel Aviv District Court, accuses Meta of enabling the widespread distribution of paid phishing ads that impersonate the bank's services. According to the complaint, Meta profits financially from approving these deceptive ads while ignoring clear warning signs, causing financial harm to the bank's customers and the public.

The fraudulent ads promise gifts such as 500-shekel gift cards, smartwatches, or entries into BMW i5 car lotteries, using unauthorized bank logos and fake partnerships with retail chains. Clicking these ads leads victims to counterfeit landing pages or apps where they are tricked into providing login details and verification codes, which attackers use to withdraw funds from their accounts. Bank Leumi's claimed damages include 3.9 million shekels reimbursed to affected customers, 17.7 million shekels for technological and monitoring costs, and 5 million shekels for reputational damage.

The bank highlights a sharp increase in these scams, noting that 243 malicious campaigns were detected in a single month, surpassing the total for the first half of the year. The lawsuit, filed through the Gornitzky law firm, emphasizes that Meta ignored obvious red flags such as poor wording, broken links, and anonymous accounts. Bank Leumi asserts that Meta has the technological means to prevent such content before publication but has only taken limited, delayed action after damage occurs.

Beyond financial compensation, Bank Leumi seeks court orders requiring Meta to verify the identity of all financial advertisers in advance, display warnings on ads from unverified accounts, and share fraudster information with law enforcement. This legal move signals a strong warning to global digital giants and demands legal accountability for platforms profiting from online scams. Meta Israel declined to comment on the lawsuit.