It's actually worse than that. If they were neutrally broadcasting, they'd at least have the argument that they were conceptually just a common carrier providing a neutral conduit between advertisers and consumers. But they are actively selecting which ads to present to which consumers---with respect to scam ads, they are preferentially sending scams to the people they believe are most likely to fall for them, and profiting as a result. They are not neutral conduits, but active participants in the underlying fraud.
Note that Section 230 only means they are not treated as a publisher or speaker of the fraudulent offer. That does not mean that they could not be held liable for an independent act in furtherance of the fraud, such as identifying vulnerable targets in collusion with the scammers and preferentially presenting the fraud to those targets.
It's kind of like the difference between a WW2-era dumb bomb and a modern GPS & laser-guided smart bomb. Way more deadly at the same payload.
I heard it before when playing GTA Vice City on the in game radio and thought it's just satire, but no, it's actually pretty accurate. "Ask your doctor..."
TL;DR:
If you're a major on-line ad distributor like Google/Meta, and broadcast malicious ads to consumers, then you should be liable for them according to local laws just how TV and radio broadcasters are liable for the same thing.
Long argument:
Sure those ads don't break Youtube/Google's own internal policy (why would they, they're an ad company reporting to their shareholders), but what about breaking the nation's/Canada's policy on ads? I bet there might be some fines there to be handed out. Hear me out.
If such scams aren't legally allowed on licensed national TV and radio channels or printed media, otherwise the broadcasters and publishers would face crippling fines, then why do we as government agencies allow Youtube to get away with broadcasting these scams to its viewers?
Sure, Youtube is not a licensed TV broadcaster but maybe we should start regulating them partly as such, similarly how the EU's Digital Markets Act aims to fix current major digital gatekeepers and make them as compliant as physical markets.
I mean, one of the main reasons big-tech has reaped such insane profits is that the same regulations that apply to traditional physical businesses like brick and mortar markets and media broadcasters, did not apply to them because they operated on the unregulated Wild West that was the internet, while also extracting all the global profits that come from operating on such a global scale except with none of the costs assigned to local legal regulatory compliance that operating physical business have.
So now it's time to patch these digital loopholes and have big-tech operating in the ad space just as accountable as the rest of the businesses, considering their size, outreach and therefore influence on the gen-pop. Google's not a scrappy start-up anymore, they can definitely afford to police the ads they serve according to the local laws, considering their size, workforce, ML tech and profits. Same with Meta and their ad network.