[_cs2017_]

Facebook used the term in the same meaning as the rest of the industry, and in the same meaning that you explained. You can read the original doc linked in the article to confirm that.

The article's author lied. They told the readers that FB encouraged fraud, while in fact FB was actually encouraging devs not to fight the chargebacks.

Not that I'm defending FB. They knew the chargebacks were very frequent, so they should have addressed the root cause by adding more verifications before a card can be used. But they were definitely not telling devs to commit fraud.