Meta Platforms Inc., the parent company of Facebook, Instagram, and WhatsApp, is under fire following revelations that it earns an estimated $7 billion annually from high-risk scam ads, according to internal documents obtained by Reuters. The report indicates that Meta displays around 15 billion scam-linked advertisements daily, many of which promote fake e-commerce schemes, illegal gambling, and banned medical products.
The leaked documents reveal that while Meta’s automated systems often detect suspicious advertisers, the company only bans them when it’s 95% certain they’re committing fraud. In cases where the certainty is lower, Meta reportedly increases ad rates instead of blocking them—a policy that effectively allows the tech giant to profit from potential scam activities.
Data from multiple Meta divisions—including finance, safety, and lobbying—show that scam and prohibited ads accounted for 10.1% of Meta’s 2024 revenue, totaling about $16 billion. Internally, this was labeled as “violating revenue,” referring to income generated from ads that breach company policies or laws. The documents further suggest that Meta’s teams were restricted from taking enforcement actions that could result in revenue losses exceeding 0.15% of total income—equivalent to roughly $135 million in early 2025.
In response, Meta spokesperson Andy Stone said the report presents a “selective view” of the company’s anti-fraud efforts. He emphasized that Meta has reduced scam-related user reports by 58% in 18 months and removed 134 million fraudulent ads in 2025. Stone added that Meta continues to “aggressively fight fraud and scams” to protect both users and legitimate advertisers.
Despite these claims, internal safety reports indicate Meta’s platforms remain deeply entangled in global fraud. A May 2025 internal study found that one-third of all successful scams in the U.S. originated on Meta platforms, and regulators are now paying close attention. The U.S. SEC is investigating Meta’s role in facilitating scam ads, while a UK watchdog reported that Meta platforms were responsible for 54% of all payments-related scam losses in 2023, surpassing all other social media platforms combined.
source: Nairametrics