07:42 AM EDT, 05/16/2025 (MT Newswires) -- Meta Platforms ( META ) is struggling to curb widespread fraud across Facebook and Instagram, including fake ads and marketplace scams, the Wall Street Journal reported Thursday, citing internal documents and regulators.

Banks like JPMorgan Chase (JPM), and global watchdogs have reportedly flagged Meta's role in a rising number of financial scams, with some banks reporting that nearly half of Zelle scam reports originated on its platforms.

Despite repeated internal warnings and mounting losses to users, Meta has been slow to implement stricter ad verification and often permits known scammers to run dozens of fraudulent ads before enforcement, the WSJ reported.

Meta's online Marketplace and ad system have reportedly become key tools for international criminal networks using tactics like impersonation and fraudulent giveaways to trick users, the news outlet added.

Meta did not immediately respond to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)