Hassan Khan
Meta Accused of Earning Billions From Scam Ads as Safety Concerns Rise
Meta, the company behind Facebook and Instagram, is once again under intense scrutiny this time over claims that scam advertisements are quietly boosting its revenue. According to a report referenced by Reuters, internal documents suggest Meta estimated that around 10% of its annual revenue in 2023 came from fraudulent ads. That figure represents a staggering $16 billion money generated from misleading or illegal promotions targeting unsuspecting users.
These fraudulent campaigns include fake investment schemes, illegal gambling promotions, and banned pharmaceuticals ads designed to trick users into sharing sensitive financial details or making payments for products that don’t exist. The worrying part? Many of these ads slip through Meta’s safety systems despite repeated criticism about the company’s approach to user protection.
How Meta Handles Suspected Scam Ads
The internal system reportedly assesses how likely an advertiser is engaging in fraud. But here’s the catch:
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Meta only removes an advertiser if it is 95% sure they’re a scammer
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If not fully sure, the platform doesn’t block the account
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Instead, Meta charges them higher ad prices to “discourage” fraud
But this approach creates a dilemma: If scammers continue running ads anyway Meta earns even more profit.
Critics argue this shows a concerning conflict of interest. The longer harmful ads run, the more revenue Meta makes while users pay the price.
Meta Responds With Different Numbers
Meta spokesperson Andy Stone rejected the allegations, saying the Reuters report portrays a “selective and distorted view” of how Meta operates. He shared improvement numbers:
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58% drop in user reports of scam ads in the past 18 months
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134 million scam ads removed from Meta platforms
However, experts note that removing harmful ads doesn’t erase the risk faced by billions of users who see them before they’re taken down.
Read More: Meta Faces Growing Challenges With Its AI Products
How Users Can Benefit
Social media scams have become one of the fastest growing forms of cybercrime:
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Online fraud losses are expected to exceed $10 billion by the end of 2025
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Facebook and Instagram users are among top global targets for scam campaigns
With Meta depending heavily on advertising which makes up over 97% of its revenue critics believe the company must make far stronger investments in fraud prevention.
For everyday users, the advice remains simple: If an ad looks too good to be true, it probably is.
In short: According to internal documents seen by Reuters, Meta expected that around 10% of its 2024 revenue nearly $16 billion would come from scam-related and illegal product ads running on its platforms.
