Scammers demand ransoms from Instagram users over fake copyright claims

Meta Platforms, Inc. (META.OQ) is facing scrutiny over vulnerabilities in its Instagram copyright reporting system, as scammers increasingly weaponize fraudulent infringement claims to extort content creators. Threat actors submit bogus copyright notices against accounts, causing automated suspensions and demonetisation, and subsequently demand ransom payments ranging from $50 to $900 via messaging apps like Telegram to retract the claims. Victims report substantial economic damage, including thousands of dollars in lost ad earnings and missed commercial brand partnerships. Creators have voiced frustration over Meta's slow dispute resolution mechanisms, noting that direct customer support remains effectively locked behind its £9.99 monthly Meta Verified subscription tier. While Meta confirmed it restored affected accounts and implemented additional safeguards following inquiries, digital intellectual property experts warn that AI-driven automation is accelerating similar extortion tactics across large social media platforms. The ongoing moderation deficiencies could pose reputational risks and potentially hinder creator retention across Meta's core ecosystem.