Meta Faces Backlash as India Cracks Down on Malware Ads Targeting Users

Meta's Response to Cyber Fraud Concerns

Bangalore: In a significant move, Meta has removed numerous advertisements after the Indian government highlighted a concerning trend of Facebook and Instagram ads utilizing sexually explicit content to entice users into downloading malware. This malware is designed to steal banking information and potentially drain users' accounts. According to government statistics, India suffered nearly $2.4 billion in cyber fraud losses in 2025, as scammers increasingly exploit the country's growing digital payment landscape.

The government reported that ads on Facebook and Instagram, operating under names like "Night Play" and "Kyss," were directing users to phishing sites. They noted a surge in financial scams involving what they termed "malicious Android applications disguised as pornography apps." After the government issued its advisory, Reuters discovered at least 39 such ads still active, many featuring sexually explicit video thumbnails to draw in clicks.

Following the alert from Reuters, Meta promptly removed all flagged ads. This action came after the news outlet sought comments regarding the advisory. This marks the first report of Meta's ad removal in response to the government's concerns. The policies of the US tech giant explicitly state that ads "must not contain adult nudity and sexual activity" and prohibit advertisements that employ deceptive or misleading tactics, including those aimed at scamming users.

This incident marks the second occasion in recent weeks where India has expressed worries about financial fraud on a significant tech platform. Previously, it was reported that the government instructed Google to deactivate hundreds of accounts on its Firebase platform after discovering that criminals were using it to impersonate major banks.

Internally, Meta had estimated that scam-related and banned goods advertising could account for about 10% of its projected revenue for 2024, approximately $16 billion, despite the company's claims of tightening regulations on such ads.

One of the ads, while still operational, directed users to a website promoting a video application that claimed to offer hundreds of pornographic videos and continuous content. To access this content, users were required to download a file named "Movexa.apk" outside of official app stores. The advisory from India warned that these apps could secretly access data stored on users' devices, capture one-time passwords and bank PINs, and transfer funds from accounts without the owner's consent.