Meta is making a fortune on fraudulent ads, internal documents show

Over $16 billion, or around 10% of Meta’s total revenue in 2024, comes from misleading advertisements and ads for illegal products on Instagram and Facebook. On top of that, the tech company estimates that users are shown 15 billion scam ads per day.

This is evident from internal company documents reviewed by Reuters.

According to the news agency, Meta has failed at least three consecutive years to identify and stop ads that exposed Facebook, Instagram, and WhatsApp users to fraudulent e-commerce and investment schemes, illegal online casinos, and the sale of banned goods.

Documents dating back to December 2024 project that fraudulent and misleading ads generate approximately $16 billion, which accounts for about 10% of Meta’s overall annual revenue.

In addition, users are shown roughly 15 billion so-called “higher risk” scam advertisements per day.

Lots of malicious ads are being flagged by Meta’s internal warning systems. However, Meta only bans advertisers if the automated systems predict that they’re at least 95% certain they’re dealing with fraudulent ads. If the systems believe an advertiser is most likely a scammer but is less certain, Meta simply charges higher ad rates as a penalty.

According to Meta spokesperson Andy Stone, the documents seen by Reuters represent a “selective view that distorts Meta’s approach to fraud and scams.” The numbers are “rough and overly-inclusive,” he claims.

“The assessment was done to validate our planned integrity investments, including in combating fraud and scams, which we did. We aggressively fight fraud and scams because people on our platforms don’t want this content, legitimate advertisers don’t want it, and we don’t want it either,” Stone adds.

The spokesman continues by saying Meta reduced user reports of scam ads globally by 58% over the past 18 months. The numbers for 2025 so far show that the company removed more than 134 million misleading ads.

Regulators worldwide are currently pushing Meta to do more to protect users from online fraud. In the US, the Securities and Exchange Commission (SEC) has launched an investigation into Meta for running ads for financial scams. In the UK, a regulator found that Meta’s products were involved in 54% of all payment-related scam losses in 2023, which is more than double compared to all other social platforms combined.

Lastly, the documents reveal that Meta aims to reduce its illicit revenue stream. However, the company is concerned that abrupt reductions in scam advertising revenue could affect its business projections.

Meta is counting on the fact that regulators will fine the company for scam ads and anticipates that these penalties will amount to $1 billion.

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