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Meta Earned $16 Billion from Scam Ads Last Year, Internal Documents Reveal
Internal documents from Meta reviewed by Reuters have uncovered that the social media giant generated approximately $16 billion last year from advertisements promoting scams and banned products, representing roughly 10% of its total revenue.
The troubling findings reveal that billions of users across Meta’s platforms—including Facebook, Instagram, and WhatsApp—were exposed to fraudulent e-commerce offers, illegal investment schemes, unauthorized gambling operations, and prohibited medical products. According to the documents, this concerning pattern has persisted for over three years without effective intervention from the company.
A December 2024 document specifically details that Meta’s platforms display an average of 15 billion “higher-risk” scam advertisements daily. These ads meet clear criteria identifying them as fraudulent content, generating approximately $7 billion in annual revenue for the company.
Perhaps more concerning is that these problematic advertisements weren’t slipping through undetected. Reuters reports that Meta’s internal warning systems had flagged these suspicious marketers, but the company only bans advertisers when its automated systems assess a 95% or higher likelihood of fraud. Advertisers deemed likely—but not definitively—to be committing fraud are instead penalized with higher advertising rates while being allowed to continue operations on the platforms.
The documents also highlight how Meta’s algorithmic systems may exacerbate the problem. When users interact with one fraudulent advertisement, they become significantly more likely to be served additional scam content, as the platform’s recommendation systems identify patterns of engagement and continue serving similar material.
The internal review spans from 2021 to 2025 and includes documents from multiple divisions within the company, including finance, lobbying, engineering, and safety departments. This extensive documentation not only reveals Meta’s apparent prioritization of profit over protective measures but also underscores broader regulatory challenges facing the digital advertising ecosystem.
Meta spokesman Andy Stone disputed the Reuters reporting in a statement, claiming the documents “present a selective view that distorts Meta’s approach to fraud and scams.” Stone asserted that the actual revenue figure from problematic advertisements was “far lower” than the reported 10% of annual revenue.
“The assessment was done to validate our planned integrity investments—including in combatting frauds and scams—which we did,” Stone explained. “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, the documents reportedly indicate that Meta is aware of growing concerns, with internal communications showing the company “vowing to do more” and setting goals to reduce overall ad scams on its platforms.
This revelation comes at a challenging time for Meta, which has faced increasing regulatory scrutiny globally regarding content moderation, user safety, and advertising practices. Digital rights advocates have long criticized major tech platforms for prioritizing engagement and revenue over user protection, particularly regarding misleading or harmful content.
The findings also raise questions about the effectiveness of self-regulation in the tech industry. With platforms handling billions of content pieces daily, the balance between automated moderation, human oversight, and profit incentives remains contentious.
For advertisers, these revelations could prompt concerns about brand safety on Meta’s platforms, potentially affecting legitimate businesses that don’t want their content appearing alongside fraudulent offerings.
Meta did not respond to additional requests for comment on the Reuters investigation. The company has previously emphasized its investments in safety and security measures, though these latest documents suggest significant gaps remain in addressing fraudulent advertising content across its platforms.
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16 Comments
As someone who works in digital marketing, this is a disappointing but not entirely surprising development. The ad tech industry has long struggled with fraudulent and deceptive practices. Meta needs to take a hard look at its internal processes and make meaningful improvements.
You make a good point. The ad tech space is rife with these issues, and leading platforms like Meta need to set a higher standard. Increased transparency and tighter controls are essential.
Wow, that’s a shocking figure. Meta has a responsibility to proactively address fraudulent ads on their platforms and protect users from scams. This raises serious questions about their content moderation practices and prioritization of profits over user safety.
I agree, this is very concerning. Meta needs to take stronger action to identify and remove these scams rather than profiting from them. Their users deserve better protection.
It’s troubling to see a tech giant like Meta prioritize profits over user protection. This speaks to deeper issues around corporate responsibility and accountability in the digital age. Regulators should look closely at this case and consider strengthening oversight.
I agree, this is an important test case for policymakers. Stronger regulations and enforcement may be needed to ensure large platforms like Meta act in the best interests of their users, not just shareholders.
As someone who follows the tech and digital advertising sectors closely, I’m not entirely surprised by this news. The lack of transparency and accountability in the ad tech industry has long been a major concern. Meta needs to step up and be a leader in addressing these problems.
I agree. Meta has the resources and influence to drive positive change in the industry, but it requires a fundamental shift in priorities and a genuine commitment to user protection. Stakeholders will be watching closely to see if they follow through.
As an investor, this news raises red flags about Meta’s business practices and long-term sustainability. Allowing such a significant portion of revenue to come from fraudulent ads is unethical and opens the company up to legal and reputational risks.
Absolutely. Investors will likely scrutinize Meta’s governance and risk management controls more closely in light of this revelation. The company needs to make substantive changes to regain trust.
As a concerned user, I hope this scandal prompts Meta to reevaluate its priorities and make substantive changes to protect its platforms from abuse. Profiting from scams is a betrayal of the public trust and goes against the company’s stated mission. Regulators and the public deserve answers.
I share your concerns. Meta has a responsibility to its users that it has clearly failed to uphold. Transparency and accountability should be the top priorities going forward, not short-term financial gains.
This is a classic case of prioritizing short-term gains over long-term sustainability. While the $16 billion in revenue from scam ads may have boosted Meta’s bottom line, the damage to user trust and the company’s reputation could have lasting consequences.
Exactly. Meta may have sacrificed its brand integrity and social responsibility for the sake of revenue growth. Rebuilding that trust will be an uphill battle if they don’t act quickly to address these issues.
This is a real wake-up call for Meta and the entire digital advertising ecosystem. Allowing such a significant portion of revenue to come from fraudulent and deceptive ads is unacceptable and undermines the trust of users and advertisers alike. Meaningful reform is urgently needed.
Well said. Meta needs to take decisive action to overhaul its ad review and enforcement practices. Failing to do so could have far-reaching consequences, both for the company and the broader industry.