London Daily

Focus on the big picture.
Thursday, Sep 17, 2026

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
UK Health Unions Warn of Staffing Pressures as Public and Private Pay Growth Diverges
Rockstar Games Faces Tribunal Claims From 23 Former Grand Theft Auto VI Developers
UK Treasury Faces Tighter Budget Constraints as Borrowing Costs and Pension Spending Rise
Prime Minister Andy Burnham Sets Out Ten-Year Plan for Greater Public Oversight of Utilities
UK Economy Grows 0.4% in July as Services and Technology Activity Strengthen
Scotland, Wales and Northern Ireland Leaders Coordinate Push for UK Constitutional Change
Police Tighten Public-Order Measures After Anti-Immigration Protests in Dover and Portsmouth
UK Ministers Pressed for Answers After US Diplomat Accused of Child Abuse Images Leaves Britain
Jaguar Land Rover Pursues NATO Defense Contracts for Defender Vehicles
British Service Member Dies in Road Accident While Deployed in Ukraine
George Osborne Calls for Britain to Rejoin EU Customs Union
Anthropic Chief Dario Amodei Urges Faster UK Action on Advanced AI Risks
UK State Pension Set for 3.9% Rise Under Triple Lock
UK Labour Market Cools as Payrolled Employment Continues to Decline
Reform UK’s £72 Million in Donations Faces Scrutiny Under Proposed Retrospective Funding Rules
UK Doctors Warn Expanded Pharmacy First Scheme Could Put Patients at Risk
British Airlines Cut Short-Haul Capacity as Jet Fuel Costs Rise
UK News Publishers Forecast 40% Search Traffic Drop as AI Overviews Expand
Axel Springer Wins Approval for £575 Million Daily Telegraph Acquisition
London Mayor Sadiq Khan Opposes Heathrow Third Runway Over Climate Targets
Scotland, Wales and Northern Ireland Leaders Hold Summit Seeking Greater Autonomy
UK Energy Price Cap Set to Rise to £1,723 in October
UK Treasury Warns Middle East Conflict Is Threatening Economic Growth
Labour Moves to Retrospectively Cap Overseas Political Donations After Reform UK Funding Surge
HMRC Warns Nearly Seven Million Adults Are Unclear About State Pension Entitlements
UK Parliament Passes Sovereign Grant Reform Before Conference Recess
British Rail Passengers Gain Automatic Right to Switch Operators During Disruptions
Burnham Hosts Downing Street Business Summit as UK Fiscal Pressure Builds
Labour Government Moves to Challenge £72 Million in Reform UK Crypto Donations
UK Advertising Industry Warns Wider Junk Food Rules Could Put £1 Billion in Media Spending at Risk
Cornwall Opens Devolution Talks With UK Government Over Transport and Local Services
UK Parliament Considers Sovereign Grant Reform Setting Royal Funding at £99.9 Million
Trades Union Congress Calls for Income-Based Energy Tariff Funded by Higher Bank Levy
UK Prime Minister Rejects Second Scottish Independence Referendum
House of Lords Begins Scrutiny of Bill to Lower UK Voting Age to 16
Anthropic Says Claude Was Exploited in Weapons-Related and State-Linked Cyber Activity
Institute of Directors Urges UK Government to Avoid Business Tax Increases in Autumn Budget
Rising Gilt Yields Cut UK Fiscal Headroom to About £13 Billion Ahead of Budget
UK Economy Grows 0.4% in July as Services and Technology Activity Strengthen
UK Government Promises Clearer Student Loan Guidance After Repayment Backlash
Charities Warn Unpaid Carers May Die Before Receiving Government Compensation
Dover Unrest Prompts Review of UK Counter-Extremism Strategy
Celtic Summit Leaders Reassert Right to Pursue Independence From UK
NHS Records Busiest Summer on Record Amid Severe Heatwaves
Harrods Faces Potential £150 Million Compensation Bill Over Al Fayed Abuse Claims
UK Parliament Opens Debate on Landmark Assisted Dying Legislation
Metropolitan Police Investigate Reform UK Over Alleged Foreign Electoral Donations
UK Economy Expands 0.4% in July as AI Investment Boosts Activity
Bank of England Signals Caution on Rates as Inflation Pressures Persist
Tesco Alerts Police After Scammers Use Its Branding in AI-Generated Fraud
×