Internal Meta documents obtained by Reuters indicate the social media giant has knowingly generated billions of dollars from scam and illegal advertisements, implementing policies that allegedly prioritized profit over user protection.
The internal papers suggest that advertisements for online gambling, prohibited drugs, and investment scams could account for roughly 10% of Meta’s total revenue for 2024, an estimated $16 billion.
Crucially, the documents reportedly show Meta was aware of suspicious advertiser behavior but opted to charge higher ad fees instead of suspending accounts.
This strategy was described as a “penalty measure” to deter further ad purchases, yet it paradoxically allowed Meta to increase its earnings from these high-risk advertisements.
The revelations emerge as Meta faces intense scrutiny from global regulators.
The U.S. Securities and Exchange Commission (SEC) is investigating the company for allegedly hosting pyramid scheme advertisements.
In the United Kingdom, consumer protection agencies reported that Meta’s platforms were linked to 54% of all payment fraud losses in 2023, exceeding all other social media platforms combined.
Meta’s internal assessments also estimate that users globally encounter more than 15 billion deceptive advertisements daily. The company projects it could earn up to $7 billion annually from very high-risk ad categories.
Adding to user vulnerability, the platform’s algorithms reportedly tend to re-show scam advertisements to users who have previously clicked on similar content, heightening the risk of repeat victimization.
Andy Stone, a Meta spokesperson, disputed the figures, calling them “broad overestimations” based on “partial information.” He asserted that the company has increased investments in fraud detection and combating scammers.
Stone stated Meta reduced global reports of scam ads by 58% over the past 18 months and has removed over 134 million pieces of deceptive content as part of its ongoing efforts.
Internally, Meta has outlined plans to reduce the proportion of revenue from scam and illegal ads to 7.3% by the end of 2025 and further to 6% by 2027.
However, the documents acknowledge concerns that a sudden cut to this revenue stream could negatively impact Meta’s overall financial performance. The company also estimates potential fines for advertising rule violations could reach $1 billion.