I saw this the other day, and for as much attention as Adwords gets for serving malware related ads, I am a little surprised this has not gotten more attention. I have never used Facebook ads, so not 100% familiar with the process, but if it is as the article states, this is huge problem in my opinion. I don't go a day on FB where I see friends who have clicked on some link somewhere and now their feed is full of obvious spam related posts until they fix the issue. Whether this is specifically a result of them clicking an ad or not I don't know, but I never click on any ads on FB or links to articles simply because I am afraid of having my own account compromised.
I think these scam ads are the bread and butter of most of the advertising networks numerically; certainly on Yahoo all you see is ads like this and for Jim Cramer's stock tips.
Why don't ESPN and other brands affected by this sue them into oblivion?