Internal documents from Meta, reviewed by Reuters, reveal that the tech giant projected 10% of its 2024 revenue—approximately $16 billion—would come from advertisements promoting scams and banned goods. These documents, spanning from 2021 to 2025, highlight Meta’s struggle to curb a flood of fraudulent ads on its platforms, including Facebook, Instagram, and WhatsApp. Despite internal warnings, Meta’s automated systems only banned advertisers if they were 95% likely to be fraudulent, while charging higher rates for those deemed suspicious but not conclusively fraudulent. This approach has allowed Meta to profit significantly from scam ads, with users exposed to an estimated 15 billion high-risk advertisements daily, generating $7 billion annually. The company’s ad-personalization system further exacerbates the issue by showing users more scam ads based on their interests. Meta’s internal assessment acknowledges the scale of abuse on its platforms but reveals a reluctance to implement stricter measures that could harm its revenue. Regulatory bodies worldwide, including the U.S. Securities and Exchange Commission and UK authorities, are pressuring Meta to address the issue. Meta has pledged to reduce scam ads by 50% in certain markets by 2025 and has already removed over 134 million pieces of scam content in 2025. However, internal documents suggest that Meta’s leadership has prioritized business interests over aggressive enforcement, with concerns that abrupt reductions in scam ad revenue could impact financial projections. The company anticipates regulatory fines of up to $1 billion but continues to earn billions from scam ads, far exceeding potential penalties. Meta’s strategy includes charging suspected fraudsters higher ad rates to deter them, though this approach has had mixed financial results. Critics argue that Meta’s efforts remain insufficient, with user reports of scams often ignored or dismissed. The revelations come as Meta invests heavily in artificial intelligence and other technologies, raising questions about its commitment to user safety and regulatory compliance.
Meta is earning a fortune on a deluge of fraudulent ads, internal documents show
