Listen to the article
Meta earned approximately $16 billion from fraudulent and prohibited advertisements last year, representing about 10% of its total revenue, according to internal company documents reviewed by Reuters. The extensive investigation reveals a troubling pattern of profit from scams across Facebook, Instagram, and WhatsApp platforms.
The confidential documents show that billions of users have been exposed to fraudulent e-commerce operations, deceptive investment schemes, illegal gambling platforms, and banned medical products for more than three years. Most concerning, Meta appears to have failed to intervene despite internal warning systems flagging these problematic advertisers.
According to one December 2024 document, Meta’s platforms display approximately 15 billion “higher-risk” scam advertisements daily. These ads meet specific criteria that clearly identify them as fraudulent. From this category alone, Meta generates an estimated $7 billion in annual revenue.
The investigation uncovered that Meta’s internal monitoring system regularly identifies suspicious marketers, but the company only bans advertisers when its automated systems calculate a 95% or higher probability of fraud. In a concerning practice, advertisers flagged as likely fraudulent but falling below this threshold aren’t removed—they’re simply charged higher advertising rates as a penalty.
The documents also highlight a troubling aspect of Meta’s algorithm. When users interact with one fraudulent advertisement, they become more likely to see additional scam content as the platform’s recommendation systems identify patterns in user engagement and continue serving similar material.
The Reuters investigation draws from internal Meta documents spanning 2021 to 2025, encompassing the company’s finance, lobbying, engineering, and safety divisions. These materials paint a picture of a company unwilling to implement stricter regulations that might impact its financial goals, highlighting broader challenges in regulating advertising across major technology platforms.
Meta spokesperson Andy Stone challenged the report’s findings in a statement to Reuters, claiming the documents “present a selective view that distorts Meta’s approach to fraud and scams.” Stone disputed the 10% revenue figure, asserting the actual number is “far lower” without providing specific figures.
“The assessment was done to validate our planned integrity investments – including in combatting frauds and scams – which we did,” Stone stated. “We aggressively fight fraud and scams because people on our platforms don’t want this content, legitimate advertisers don’t want it and we don’t want it either.”
Despite these denials, some of the leaked documents suggest Meta recognizes the growing problem, with internal communications showing commitments to reduce fraudulent advertising. The company has reportedly set specific goals to address the issue, though details of these initiatives remain unclear.
This revelation comes amid increasing regulatory scrutiny of major technology companies worldwide. Lawmakers and consumer protection agencies have expressed growing concerns about the role of social media platforms in spreading misinformation and enabling fraud. The European Union has already implemented the Digital Services Act, which holds platforms more accountable for illegal content, while similar legislation is being considered in other jurisdictions.
For Meta, this report presents significant reputational and potentially regulatory challenges. As the company continues to invest heavily in metaverse technologies and artificial intelligence, questions about its handling of basic platform integrity issues may undermine user trust and investor confidence.
Industry analysts note that addressing fraudulent advertising requires balancing automated detection systems with human review—a challenge given the billions of advertisements displayed across Meta’s platforms daily. However, critics argue that the company’s apparent willingness to profit from suspicious advertisements rather than remove them reflects problematic priorities.
Meta did not respond to additional requests for comment on the findings.
Fact Checker
Verify the accuracy of this article using The Disinformation Commission analysis and real-time sources.
8 Comments
This is a deeply concerning report. Meta needs to be held accountable for allowing these kinds of scams to proliferate on their platforms. They have a moral and ethical duty to their users to do much better.
Profiting from fraud and misinformation is completely unacceptable. Meta needs to take strong and immediate action to address these issues. Shareholders and users deserve better from a company of this size and influence.
It’s disheartening to see a tech giant like Meta apparently turning a blind eye to fraud and misinformation in order to boost their revenue. They have a responsibility to their users and the public to do better at policing their platforms.
This is really troubling. I hope the regulators look closely at Meta’s practices and force them to clean up their act. Users shouldn’t have to wade through fraudulent ads and misinformation just to use their products.
Wow, if these allegations are true, that’s a huge breach of trust. Meta needs to take stronger action to weed out fraudulent ads and protect users from misinformation. I hope the regulators step in to investigate and hold the company accountable.
If these allegations are accurate, it’s a clear breach of trust by Meta. They need to drastically improve their fraud detection and enforcement, even if it means losing some short-term revenue. Protecting users should be their top priority.
This is really concerning. I wonder how much of Meta’s revenue comes from this type of questionable advertising? They need to improve their fraud detection and enforcement, even if it means sacrificing some short-term profits.
I agree. Prioritizing user safety and trust should be their top priority, even if it cuts into their bottom line in the short term. They can’t keep profiting from scams at the expense of their users.