London Daily

Focus on the big picture.
Saturday, Oct 25, 2025

Facebook Said A Chinese Company Compromised Users With Malware And Then Ran Ads Using Their Accounts

Facebook Said A Chinese Company Compromised Users With Malware And Then Ran Ads Using Their Accounts

The defendants allegedly used the accounts to run ads thaFacebook is suing a Hong Kong–based company and two Chinese citizens it says used malware to compromise user accounts in order to run millions of dollars of deceptive Facebook ads that often featured celebrities.

The company filed the federal lawsuit Thursday in California against ILikeAd Media International Company, Chen Xiao Cong, and Huang Tao. Facebook alleges that Cong, of Wuhan, Hubei province, China, developed the malware, while Tao, who is based in Guangzhou, Guangdong province, China, was responsible for the “distrt often misused the images of celebrities to sell “counterfeit goods and diet pills.”
Facebook is suing a Hong Kong–based company and two Chinese citizens it says used malware to compromise user accounts in order to run millions of dollars of deceptive Facebook ads that often featured celebrities.

The company filed the federal lawsuit Thursday in California against ILikeAd Media International Company, Chen Xiao Cong, and Huang Tao. Facebook alleges that Cong, of Wuhan, Hubei province, China, developed the malware, while Tao, who is based in Guangzhou, Guangdong province, China, was responsible for the “distribution and installation of the malicious extension.”

Rob Leathern, Facebook’s director of product management for business integrity, told BuzzFeed News the lawsuit is a way to “create consequences for these folks outside of shutting down their ad accounts and preventing them from using the platform.”

“This [scheme] has affected folks in multiple countries and is something we began investigating in late 2018,” he said.

The suit follows similar Facebook legal action this year related to ads and malware. In August, it sued two Chinese app makers that allegedly committed ad fraud by programming bots to click on ads on Facebook. And in March it sued two Ukrainians who allegedly used malware to steal user data.

Facebook’s court filing alleges the defendants tricked users into installing their malware by bundling it with other programs. Once installed, the malware compromised a user’s Facebook account. The defendants allegedly used the accounts to run ads that often misused the images of celebrities to sell “counterfeit goods and diet pills.” Facebook’s filing alleges the malware was programmed to detect whether a compromised account was set up to run ads and would then place ads that were “billed to the victim’s ad account.”

A blog post about the suit from Leathern and Jessica Romero, Facebook’s director of platform enforcement and litigation, said the company has “refunded victims whose accounts were used to run unauthorized ads and helped them to secure their accounts.” Facebook said it reimbursed victims more than $4 million.

A report from CNET last month offered a detailed breakdown of what happened when one man's Facebook account was hacked and used to place ads.

In addition to using compromised accounts to run ads, Facebook also alleges the defendants used a process known as “cloaking” to help defeat the company’s ad review process.

“Through cloaking, the defendants deliberately disguised the true destination of the link in the ad by displaying one version of an ad’s landing page to Facebook’s systems and a different version to Facebook users,” said the blog post.

The use of cloaking and celebrity photos in deceptive ads is a huge problem on Facebook that often results in users being tricked into signing up for expensive subscriptions without their knowledge. In October, BuzzFeed News exposed a massive subscription trap operation that used rented Facebook accounts to run more than $50 million worth of deceptive ads since 2016. The ads tricked users into handing over their credit card information for scam offerings of skin cream and erectile dysfunction pills, among other products.

The operation was run by a San Diego–based marketing agency called Ads Inc. The company has since shut down.

Leathern said Facebook is still “considering its legal options” regarding Ads Inc.
Newsletter

Related Articles

0:00
0:00
Close
Microsoft AI CEO: ‘We’re making an AI that you can trust your kids to use’ — but can Microsoft rebuild its own trust before fixing the industry’s?
China and Russia Deploy Seductive Espionage Networks to Infiltrate U.S. Tech Sector
Apple’s ‘iPhone Air’ Collapses After One Month — Another Major Misstep for the Tech Giant
Graham Potter Begins New Chapter as Sweden Head Coach on Short-Term Deal
Ecuadorian President Daniel Noboa Alleges Poison Plot via Chocolate and Jam
Lakestar to Halt External Fundraising as Investor in Revolut and Spotify
U.S. Innovation Ranking Under Scrutiny as China Leads Output Outputs but Ranks 10th
Three Men Arrested in London on Suspicion of Spying for Russia
Porsche Reverses EV Strategy as New CEO Bets on Petrol and Hybrids
Singapore’s Prime Minister Warns of ‘Messy’ Transition to Post-American Global Order
Andreessen Horowitz Sets Sights on Ten-Billion-Dollar Fund for Tech Surge
US Administration Under President Donald Trump Reportedly Lifts Ban on Ukraine’s Use of Storm Shadow Missiles Against Russia
‘Frightening’ First Night in Prison for Sarkozy: Inmates Riot and Shout ‘Little Nicolas’
White House Announces No Imminent Summit Between Trump and Putin
US and Qatar Warn EU of Trade and Energy Risks from Tough Climate Regulation
Apple Challenges EU Digital Markets Act Crackdown in Landmark Court Battle
Nicolas Sarkozy begins five-year prison term at La Santé in Paris
Japan stocks surge to record as Sanae Takaichi becomes Prime Minister
This Is How the 'Heist of the Century' Was Carried Out at the Louvre in Seven Minutes: France Humiliated as Crown with 2,000 Diamonds Vanishes
China Warns UK of ‘Consequences’ After Delay to London Embassy Approval
France’s Wealthy Shift Billions to Luxembourg and Switzerland Amid Tax and Political Turmoil
"Sniper Position": Observation Post Targeting 'Air Force One' Found Before Trump’s Arrival in Florida
Shouting Match at the White House: 'Trump Cursed, Threw Maps, and Told Zelensky – "Putin Will Destroy You"'
Windows’ Own ‘Siri’ Has Arrived: You Can Now Talk to Your Computer
Thailand and Singapore Investigate Cambodian-Based Prince Group as U.S. and U.K. Sanctions Unfold
‘No Kings’ Protests Inflate Numbers — But History Shows Nations Collapse Without Strong Executive Power
Chinese Tech Giants Halt Stablecoin Launches After Beijing’s Regulatory Intervention
Manhattan Jury Holds BNP Paribas Liable for Enabling Sudanese Government Abuses
Trump Orders Immediate Release of Former Congressman George Santos After Commuting Prison Sentence
S&P Downgrades France’s Credit Rating, Citing Soaring Debt and Political Instability
Ofcom Rules BBC’s Gaza Documentary ‘Materially Misleading’ Over Narrator’s Hamas Ties
Diane Keaton’s Cause of Death Revealed as Pneumonia, Family Confirms
Former Lostprophets Frontman Ian Watkins Stabbed to Death in British Prison
"The Tsunami Is Coming, and It’s Massive": The World’s Richest Man Unveils a New AI Vision
Outsider, Heroine, Trailblazer: Diane Keaton Was Always a Little Strange — and Forever One of a Kind
Dramatic Development in the Death of 'Mango' Founder: Billionaire's Son Suspected of Murder
Two Years of Darkness: The Harrowing Testimonies of Israeli Hostages Emerging From Gaza Captivity
EU Moves to Use Frozen Russian Assets to Buy U.S. Weapons for Ukraine
Europe Emerges as the Biggest Casualty in U.S.-China Rare Earth Rivalry
HSBC Confronts Strategic Crossroads as NAB Seeks Only Retail Arm in Australia Exit
U.S. Chamber Sues Trump Over $100,000 H-1B Visa Fee
Shenzhen Expo Spotlights China’s Quantum Step in Semiconductor Self-Reliance
China Accelerates to the Forefront in Global Nuclear Fusion Race
Yachts, Private Jets, and a Picasso Painting: Exposed as 'One of the Largest Frauds in History'
Australia’s Wedgetail Spies Aid NATO Response as Russian MiGs Breach Estonian Airspace
McGowan Urges Chalmers to Cut Spending Over Tax Hike to Close $20 Billion Budget Gap
Victoria Orders Review of Transgender Prison Placement Amid Safety Concerns for Female Inmates
U.S. Treasury Mobilises New $20 Billion Debt Facility to Stabilise Argentina
French Business Leaders Decry Budget as Macron’s Pro-Enterprise Promise Undermined
Trump Claims Modi Pledged India Would End Russian Oil Imports Amid U.S. Tariff Pressure
×