admin
A recent investigative report alleges that Meta, the parent company of Facebook and Instagram, may be deriving a substantial portion of its revenue from scam advertisements and promotions for prohibited items. The claims, sourced from internal company documents reportedly accessed by Reuters journalists, paint a troubling picture of the platform’s awareness and handling of deceptive content.
Key Findings from Internal Estimates
According to the documents, Meta reportedly estimated that roughly 10% of its total yearly revenue—a figure amounting to an estimated $16 billion—originates from fraudulent advertisements.
Further detailing the scope of the problem, one internal document from December 2024 reportedly noted that Meta’s platforms display around 15 billion advertisements deemed “higher risk”—meaning they show clear signs of being fraudulent—to users every single day.
This data suggests that the company is not only fully informed about the proliferation of deceptive content but may be intentionally slow to act due to the massive financial gain. Critics argue this practice is detrimental to legitimate businesses advertising on the platform, as the high volume of fraudulent ads may increase costs for all advertisers by contributing to overall demand for ad space.
Enforcement Threshold and User Experience
The internal records also highlighted a high bar for enforcement, indicating that Meta’s system only moves against potential scams when it can confirm them as fraudulent with a stringent 95% accuracy threshold.
Compounding the issue for users, the reports note that Meta’s personalized advertising system inadvertently promotes the problem. Individuals who click on a fraudulent ad are, counterintuitively, likely to be shown an increased number of similar scam promotions because the system interprets the initial click as an expression of interest.
Global Scams and Regulatory Risk
These allegations come at a time of rising global concern over online financial fraud. The Global Anti-Scam Alliance estimated that victims worldwide lost at least a trillion dollars to scams last year, with nearly one-quarter (23%) of adults globally reporting money stolen by scammers.
Given Meta’s vast global reach, the revelation has immediately drawn the attention of regulators in various regions. If the claims are substantiated, Meta could face significant legal scrutiny and substantial financial penalties. However, the effectiveness of any regulatory fine is being questioned, as it would need to surpass the estimated revenue gained from the fraudulent ads to act as a true deterrent.
Meta’s Response
In response to the leak of internal documents, Meta has pushed back, arguing that the records were not meant for public disclosure and do not necessarily represent a complete or current view of the situation. The company has pointed to its continuous efforts to combat fraud, claiming its evolving scam detection systems resulted in a 58% global reduction in user reports of scam ads throughout 2025.
