Bank Leumi Sues Meta for NIS 26.6 Million Over Fraudulent Ads on Facebook and Instagram

Bank Leumi has escalated its fight against online impersonation scams by filing a lawsuit against Meta in the Tel Aviv District Court, seeking NIS 26.6 million in damages. The bank alleges that Meta’s platforms, Facebook and Instagram, host paid advertisements that impersonate Bank Leumi, tricking users into revealing sensitive information. According to the bank, Meta allows these ads to be published despite visible signs of fraud, and its filtering and monitoring systems are insufficient to prevent such scams early on.

The lawsuit claims the fraudulent ads misuse Bank Leumi’s name and trademarks, offering fake benefits such as shopping vouchers and car raffles to lure users. Attackers then attempt to obtain login credentials and verification codes to access victims’ bank accounts and withdraw funds. Bank Leumi highlights that some ads displayed clear indicators of fraud, including awkward wording, distorted website addresses, and use of anonymous accounts not officially verified by the bank.

The damages claimed total NIS 26.6 million, broken down into NIS 3.9 million for reimbursing affected customers, NIS 17.7 million for monitoring, investigation, and operational costs, and NIS 5 million for reputational harm. The bank notes a recent surge in fraudulent activity, with 243 fake ads detected in July alone, surpassing the total for the first half of 2026. In early August, customer losses reached NIS 590,000, while an additional NIS 9.2 million in potential damage was prevented.

Beyond financial compensation, Bank Leumi requests permanent injunctions against Meta and demands stricter preventive measures. These include early identity verification for advertisers, stringent rules for financial ads, clear warnings on unverified accounts, prior ad review by the bank, and disclosure of advertiser details for enforcement. The bank states that previous attempts to resolve the issue with Meta failed, as the company focused on removing individual ads post-publication rather than implementing proactive controls.