🌅 Meta Makes Billions from Scam Ads and Fraud

SOURCE

Reuters

WHAT TO KNOW

• A new investigation by Reuters uncovered internal company documents that show Meta estimates 10% of its total annual revenue comes from ads for scams and banned products, amounting to roughly $16 billion in “violating revenue” in 2024. The documents note Meta’s work to reduce the prevalence of fraudulent ads across its products, while a spokesperson for the company says it has removed 134 million scam ads in the past 18 months.

WHY IT MATTERS

• Meta estimates it shows users 15 billion scam ads every day across Facebook, Instagram, and WhatsApp, which the documents state the company handles by either removing marketers that its systems predict are at least 95% certain to be committing fraud, or by charging scammers a higher rate as a penalty. The documents also show Meta earns $3.5 billion every six months from scam ads that “present a higher legal risk,” meaning they are clearly fraudulent (e.g., by falsely claiming to be a brand or public figure). Meta believes the revenue exceeds any penalties it might have to pay for running the scam ads.

CONNECT THE DOTS

• The documents suggest Meta products have become a key part of the global fraud economy. In May 2025, an internal presentation by its safety staff estimated Meta platforms were involved in one-third of all successful scams in the U.S., while also acknowledging that other major tech companies do a better job addressing fraud on their platforms. In the U.K., regulators say the company’s products were used in 54% of all payments-related scams in 2023—more than double the share attributed to all other social media platforms combined—and 18% of all such financial losses.