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Liza Ayres
Contributing Writer

As technology evolves and advances, so too do the tactics used to override security protocols and roadblocks that prevent scammers from taking advantage of unsuspecting people. Fraudsters on the internet constantly adapt their techniques to manipulate even the most advanced online sites without being caught.

Ads Inc., a company that claimed to be a digital marketing firm, was one such enterprise. Asher Burke started Ads Inc. in 2015 based on what’s commonly known as the “subscription trap” structure, a method that tricks people into buying what they think is a single, free trial of a product, only to have actually unwillingly committed to a pricey monthly subscription that is purposefully designed to be difficult to cancel.

The scam was well thought-out. Ads Inc. created an ad with a tabloid-like image of a celebrity that appeared on Facebook. The ad lead to a fake article in which the “celebrity” claimed they’d discovered an amazing new beauty product that the reader could try for a low shipping cost. The product trial appeared to be a no-risk experience, but within a week or two of the initial payment, another, much higher, charge appeared on customers’ credit cards because they were unknowingly enrolled in a monthly subscription. Ads Inc. said buyers could cancel, but their customer service number is usually unattended.

Free trial scams such as these are some of the most lucrative and enduring fraud traps online. The Federal Trade Commission states they’ve gone after fraudsters over the past decade who’ve stolen more than $1.3 billion from unsuspecting consumers. They often target people who are less technologically adept, and the scams adapt to media platforms’ ever-changing security measures so they can bypass inspections.

What gave Ads Inc. even more validity was their integration of another scam in which they convinced thousands of people to rent or sell their personal Facebook accounts to the company, which they then used to place their deceptive ads. When someone agreed to rent their profile, they would change their settings to register it to run ads. Then, Ads Inc. would send them a small computer in the mail, allowing Ads Inc. to control their account and obscure who was buying the ads. By using accounts of ordinary people, they reached customers all around the world, and they appeared as an average Facebook user, rather than being flagged for suspicious behavior.

A 2019 BuzzFeed News investigation revealed that, since 2016, Ads Inc. and their affiliates spent more than $50 million on placing ads on Facebook through rented accounts. Overseas workers in the Philippines managed the account rentals while continuously recruiting a network of mostly stay-at-home moms in the U.S. to encourage friends and family to rent their accounts for a monthly payment of $15-$30. Burke’s Facebook account operation eventually became large enough that his company sold extra rented accounts to other marketers for $800 per login.

Both account rental and deceptive advertising violate Facebook’s terms of service. David Carroll, an associate professor of media design at Parsons School of Design says that Facebook’s “scale prevents it from effectively monitoring [scams].” Ads Inc.’s account rental scheme is the largest of its kind to be exposed and reminds us how Facebook has revolutionized the possibilities of scamming by “putting average people in the crosshairs of sophisticated black hat marketers looking to rip them off,” BuzzFeed News Reporter Craig Silverman says.

Burke died tragically after a helicopter crash in late 2018. Eric Meyers, who had been the head of Ads Inc.’s affiliate operations, took over the Ads Inc. operations. In October of this year, Facebook sent Ads Inc. a cease-and-desist notice as a result of BuzzFeed News’ findings. Meyers announced the official shutdown of the company in late October, claiming it was due to financial pressures after Burke’s death.

Ads Inc.’s ads are being removed from Facebook, and accounts are either reverting to proper ownership or being taken down. This widespread fraud encourages social media users and online consumers to be wary of free trial offers in which they must provide their credit card information, and to be skeptical of both celebrity-endorsed products and arrangements that promise quick and easy income.

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