New Mexico Attorney General Raúl Torrez won a historic sum of $375 million in a landmark child safety case against Meta earlier this year. But the next stage of the fight could be even more consequential for Meta and the social media industry at large.
Technology
Meta’s historic loss in court could cost a lot more than $375 million
Beginning Monday, attorneys for Meta and New Mexico will return to a Santa Fe courthouse for a three-week public nuisance trial, where they’ll argue over the changes the AG wants the judge to order Meta make to Facebook, Instagram, and WhatsApp. Those changes include adding age verification for New Mexico users, prohibiting end-to-end encryption for users under 18 and capping their use to 90 hours per month, limiting engagement-boosting features like infinite scroll and autoplay, and requiring Meta to detect 99 percent of new child sexual abuse material (CSAM).
“From the outset, our goal was to try and change the way the company’s doing business,” Torrez told The Verge on a recent visit to Washington, DC, to advocate for new kids safety legislation. “I recognize that even at $375 million for a company this big and this profitable, it’s not enough in and of itself to change the way they’re doing business. In fact, there’s probably some folks in that company who think of it as the cost of doing business.”
“Even at $375 million for a company this big and this profitable, it’s not enough in and of itself to change the way they’re doing business”
While any changes ordered by the judge would only apply to Meta and its operations in New Mexico, the company could apply the changes in other states for the sake of simplicity. Or, as it’s threatened to do, it could simply go dark in the state. A court order could send a message to other tech companies that courts may be willing to alter their businesses if they’re found liable.
During the trial, New Mexico will argue Meta has become a public nuisance by creating a public health hazard in the state. The AG’s office expects to call on about 15 witnesses, including experts who will testify to the feasibility of their proposed remedies, and fact witnesses who will testify about Meta’s alleged harms. After Meta makes its defense, Judge Bryan Biedscheid will evaluate which proposals are relevant and feasible — a process that could take some time, compared to the speedy turnaround of the jury verdict in March.
A sweeping win for New Mexico could energize Torrez and thousands of other plaintiffs currently pursuing cases against tech companies. Conversely, a limited order could be a significant blow. The outcome won’t directly impact other cases, but it will almost certainly color negotiations over potential settlements.
Several of Torrez’s requests are hot-button tech policy issues. Age verification would almost certainly require Meta or a third-party provider to collect more personal information on adults and minors alike, which privacy advocates have consistently warned can make users less safe. Don McGowan, who previously served on the board of the National Center for Missing and Exploited Children (NCMEC), said that barring encrypted communications on platforms like Facebook “is a great way to make sure that nobody uses Facebook Messenger anymore and just moves their activity to other platforms that aren’t touched by this lawsuit.”
The mandate may do little to change the reality of certain parts of the business — Meta recently announced it was getting rid of end-to-end encrypted messaging on Instagram that it said “very few people” actually used.
Peter Chapman, associate director of the Knight-Georgetown Institute, which works to connect policymakers and others with independent tech policy research, said there could be “significant tradeoffs” to a prohibition on encryption, and other changes may be more effective. For example, evidence presented by the state showed that Meta’s own profile recommendations were connecting adults and minors, a feature that poses a clearer danger of harm without much benefit, and which Torrez is also asking the court to stop. “There’s an opportunity to intervene at that level and try to prevent more of these harmful interactions from taking place without having to tackle encryption,” said Chapman.
No single feature change is likely to solve the entire child and teen safety problem, said Chapman, which is why it’s notable that Torrez plans to ask for several layers of changes. Still, the overall effectiveness of any given remedy will also depend on how it’s implemented and monitored. For instance, what would be the methodology Meta uses to report a 99 percent detection rate of new CSAM? How does it count or surmise what it hasn’t caught? The same goes for the accuracy and reliability of any mandated age verification.
Meta points to this potential issue in its argument against Torrez’s proposed remedies. “Regardless of where the accuracy threshold is set, Meta would never be able to prove that the system met that standard, because doing the calculation would require that Meta detect 100% of CSAM to use as the denominator,” the company wrote in a legal filing. Torrez’s chief deputy, James Grayson, said on a press call that the court and an appointed independent monitor would have some discretion over tracking; the office hasn’t yet identified who this monitor would be.
“The demands that are being made in New Mexico are ill-informed and provide massive additional exposure for other kinds of exploitation”
Meta and other groups that oppose the AG’s approach say the outcomes he’s seeking are counterproductive. “The demands that are being made in New Mexico are ill-informed and provide massive additional exposure for other kinds of exploitation,” said Maureen Flatley, president of Stop Child Predators, a group that advocates for more funding for enforcement of criminal laws against child predators, and has received funding from Meta-backed trade group NetChoice. “This notion that the platforms have to be responsible for pushing all these people out would be like saying to the US Bankers Association, ‘By the way, you are responsible for all the bank robberies from now on,’ which is ludicrous.”
“The New Mexico Attorney General’s focus on a single platform is a misguided strategy that ignores the hundreds of other apps teens use daily,” Meta spokesperson Chris Sgro said in a statement. “The state’s proposed mandates infringe on parental rights and stifle free expression for all New Mexicans. Regardless, we remain committed to providing safe, age-appropriate experiences and have already launched many of the protections the state seeks, including 13 safety measures this past year.”
But Torrez has taken aim at the broader tech industry, too. He recently visited Washington, DC, to advocate for new protections for kids online and an overhaul of Section 230, the law that protects tech platforms from being held liable for their users’ posts. “While we were able to prevail in our district court in Santa Fe, I still think the law as it currently exists creates a lot of ambiguity,” he told The Verge on that visit. “If Section 230 were not something that these companies could hide behind, then it increases the chances that they’re going to have to actually make their case to a jury.”
But Chapman said regulation through lawsuits isn’t an “uncommon sort of story” in the US. “Whether that’s tobacco, opioids, e-cigarettes, there is precedent for legal action moving a broader policy conversation.”
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Paul Schrader attends a special screening of “Oh, Canada” at IFC Center in New York City on Dec. 5, 2024. (Dia Dipasupil/Getty Images)
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Welcome to Fox News’ Artificial Intelligence newsletter with the latest AI technology advancements.
IN TODAY’S NEWSLETTER:
– Oscar-nominated filmmaker disappointed his AI girlfriend dumped him
– AI layoffs may be backfiring on companies
– Nvidia CEO Jensen Huang warns China has ‘all the chips they need’ despite US bans
BAD BREAK-UP: Dating in the digital era isn’t easy, as one Oscar-nominated filmmaker learned the hard way. Paul Schrader, the screenwriter of Martin Scorsese classics like “Taxi Driver” and “Raging Bull,” revealed in a Facebook post that he had dabbled in developing an “AI girlfriend.”
ROI MIA: A lot of workers have had the same uneasy thought lately: “Is AI coming for my job?” It is a fair question. Companies keep talking about automation, AI agents and lower costs. Some workers hear that and wonder whether their next performance review will come with a chatbot-shaped shadow in the room. However, a new Gartner study suggests the story may be more complicated. Many companies are cutting jobs while adopting AI, but those cuts are not clearly producing better returns.
‘ALL THE CHIPS THEY NEED’: In a stark warning to Washington policymakers, Nvidia CEO Jensen Huang revealed that U.S. technology export bans may be triggering unintended consequences, declaring that China-backed rival Huawei is actively “flourishing in our absence.”
TOUGH CROWD: Former Google CEO Eric Schmidt was met with boos during a University of Arizona commencement speech after discussing artificial intelligence and fears the technology could reshape – or replace – parts of the workforce.
PAINFUL ERROR: Students at Glendale Community College revolted against AI when it was revealed during their graduation ceremony that the robot tasked with announcing the names of the new graduates experienced a glitch and skipped over hundreds of students who were set to hear their names as they walked across the stage.
BATTLE OF THE TITANS: A federal jury ruled against Elon Musk in his lawsuit accusing OpenAI of abandoning its nonprofit roots, finding that neither the tech company nor CEO Sam Altman could be held liable in the matter because Musk waited too long to bring the case.
NEXT-GEN WARFARE: A top U.S. defense contractor pulled back the curtain on AI-powered systems designed to hunt down and destroy swarms of enemy drones as the U.S. rapidly expands its next-generation warfighting capabilities.
‘UNSETTLING’: Standard Chartered CEO Bill Winters on Wednesday walked back comments he made at an investor event Tuesday when he said the bank plans to cut thousands of jobs as it replaces what he called “lower-value human capital” with tech powered by artificial intelligence (AI).
OPINION: There’s a revolution underway in American education, and first lady Melania Trump and the White House are leading the way, Arthur Herman and Beth Herman write.
SLOW DOWN: Waymo is temporarily halting freeway operations for its robotaxi service in several U.S. markets as the company works to address performance issues in construction zones, FOX Business has learned.
‘NOT GOING AWAY’: New York Times staffers got up from their workspaces inside the paper’s New York City headquarters on Wednesday and gathered outside to rally against management, demanding a fair contract and insisting the company puts profits over people. The event, dubbed “Rally for a Fair Contract,” came as the Times Guild is fighting for protections against artificial intelligence, guaranteed hybrid work, affordable health care, pay increases that match the rising cost of living and keeping work within the union.
SWEET MOVE: A Florida community has deployed AI-powered robotic beehives as declining bee populations continue raising concerns about the future of the US food supply.
BLOCKBUSTER DEAL: NextEra Energy is making a massive $66.8 billion bet that America’s artificial intelligence boom will drive a historic surge in electricity demand, announcing plans to acquire Dominion Energy to create the world’s largest regulated utility by market value.
BEAM ME UP: New York City’s LaGuardia Airport is bringing science fiction to the terminal with the debut of an AI-powered hologram concierge designed to help travelers find gates, lounges and baggage claim through face-to-face conversations.
DISAPPEARING ACT: Chatting with AI can feel casual until the question gets personal. Maybe you want to ask about a health concern. Maybe you need help understanding a loan. Or maybe you want career advice without feeling like your question is sitting in a data file somewhere. That is the idea behind Incognito Chat with Meta AI, a new private chat mode Meta says is coming to WhatsApp and the Meta AI app.
APP OVERHAUL: Airbnb is pushing far beyond home rentals, rolling out airport pickups, grocery delivery, luggage storage, car rentals, boutique hotels and exclusive travel experiences as it expands deeper into travel services. The app is also adding boutique and independent hotels in major cities including New York, Paris, London, Rome and Singapore, alongside new AI-powered features like review summaries, listing comparisons and smarter customer support tools.
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It starts with something that feels exciting. An email lands in your inbox claiming you may be entitled to an inheritance. No warning. No backstory. Just a formal message and a ticking clock.
That is exactly what happened to Tim C., who wrote us:
I received an email this afternoon that I have never received before. Just wondering if you have seen anything like this before. I think it is a scam, but it sure looks real.
Tim trusted his instincts. This is a scam. And it is one of the more convincing ones making the rounds right now.
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INSIDE A SCAMMER’S DAY AND HOW THEY TARGET YOU
This inheritance email looks official, but the vague details, fake registry and 48-hour deadline are major red flags. (Kurt “CyberGuy” Knutsson)
What the ‘Heir Research Registry’ email looks like
This email looks official at first glance. Every part of it is designed to build trust fast and push you to click before you question it.
The message claims you are a “Primary Potential Beneficiary” tied to an unclaimed estate. It warns that the funds could be reassigned to the state if you do not act within 48 hours.
There is also a button that says “Check My Unclaimed Inheritance.” That button is the trap.
What makes this scam more believable than most
This version is more polished than the typical scam email. That is what makes it dangerous.
It uses your real name
“Tim C” makes it feel targeted and legitimate. Scammers often pull names from leaked data or public records.
It mimics legal and financial language
Phrases like “probate holding period” and “estate allocation” sound official but are intentionally vague.
It includes a reference ID
The ID makes it feel trackable and real, but it cannot be verified.
It looks structured and professional
The layout, table format and compliance tone resemble real financial notices.
It removes obvious scam signals
There are no spelling errors or strange formatting. That lowers your guard.
SCAMMERS NOW IMPERSONATE COWORKERS, STEAL EMAIL THREADS IN CONVINCING PHISHING ATTACKS
Scammers rely on quick reactions, so taking a moment to question unexpected messages can help you avoid costly mistakes. (Kurt “CyberGuy” Knutsson)
The red flags hiding in plain sight
This message appears legitimate. But several details give it away.
‘2026 National Heir Research Registry’ does not exist
There is no official registry by that name at the federal or state level.
The 48-hour deadline is a pressure tactic
Real estate and probate processes do not operate on urgent email deadlines.
No law firm, executor or court is named
Legitimate inheritance notices always include verifiable legal contacts.
The explanation is intentionally vague
You are told there is an estate, but not who it belongs to or how you are connected.
The ‘Check My Unclaimed Inheritance’ button is the trap
This is likely a phishing link designed to collect personal data.
The fine print tries to sound legal
References to the “Unclaimed Property Act” are generic and not tied to a real case.
Why this email is so effective
This scam hits three emotional triggers at once.
- Curiosity. Who left me money?
- Urgency. I only have 48 hours
- Opportunity. I might lose something valuable
That combination pushes you to act quickly rather than slowing down to verify.
What this scam is trying to do
This isn’t about giving you money. It is about getting your information. If you click the link, a few things can happen:
- You land on a fake form that asks for personal details
- You are prompted to verify your identity with sensitive data
- You may be asked for banking information
- In some cases, malware can install in the background
Once scammers have your data, they can use it for identity theft, financial fraud or future scams.
SCAMMERS ARE ABUSING ICLOUD CALENDAR TO SEND PHISHING EMAILS
Clicking a single link in a scam email can expose your personal data and open the door to identity theft or financial fraud. (Kurt “CyberGuy” Knutsson)
How real inheritance notifications actually work
A quick reality check makes this easier to spot. Legitimate inheritance notices follow a very different process:
- They come from a named attorney, executor or law firm with verifiable contact details you can confirm independently
- They include clear information about the estate and your relationship to it
- They do not pressure you with short deadlines
- They do not ask you to click random links to claim funds
If someone truly left you money, the legal system does not rely on mystery emails.
How to stay safe from inheritance scam emails
If you receive an email like this, take a step back and follow these steps. Scammers rely on speed. Your best defense is slowing down.
1) Do not click anything and use strong antivirus software
Avoid links, buttons or attachments in unexpected messages and make sure you are protected with strong antivirus software that can block malicious sites and downloads. Get my picks for the best 2026 antivirus protection winners for your Windows, Mac, Android and iOS devices at CyberGuy.com.
2) Do not reply
Engaging can confirm your email is active and lead to more scams.
3) Delete the email or mark the email as spam
This helps your email provider block similar messages.
4) Hover over links before clicking
On a computer, place your cursor over links to preview the real URL.
5) Check the sender’s email address carefully
Scammers often use addresses that look official but include small misspellings or unfamiliar domains.
6) Verify through official channels only
Search your state’s unclaimed property website directly. Never use links from the email.
7) Search the organization name yourself
Typing the name into Google can quickly reveal if others have flagged it as a scam.
8) Use a data removal service
Limiting how much of your personal information is available online makes it harder for scammers to target you with personalized messages like this. Check out my top picks for data removal services and get a free scan to find out if your personal information is already out on the web by visiting CyberGuy.com.
9) Report the scam email
Forward it to reportphishing@apwg.org or report it through your email provider.
10) Protect your personal information
Never share your Social Security number, date of birth or banking details through unsolicited messages.
Kurt’s key takeaways
That unexpected inheritance email can feel exciting for a moment. Then reality should take over. If you do not recognize the name, if there is no clear paper trail and if there is a countdown clock, it is almost certainly a scam. Tim paused before clicking. That pause is what protects you. Real money finds you through legal channels, not through a random email with a deadline.
If an email promised you money but gave you only 48 hours to act, would you click first or verify first? Let us know by writing to us at CyberGuy.com.
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