Archive · 7 Nov 2025
Meta Reportedly Earned Billions from Scam Ads, Facing Regulatory Scrutiny
Imagine Meta, the company that owns Facebook and Instagram, makes money by showing ads.
A new report says secret papers from inside Meta show they might have made almost $16 billion in a year from ads that are scams or for things they shouldn't allow.
These scam ads could be for fake stores or tricky investments.
The papers also suggest Meta has rules that let these bad ads stay up unless their computer system is almost completely sure it's a scam.
This has made government groups like the SEC in the US and others in the UK pay closer attention.
They are even looking into whether Meta knew about these scam ads and let them stay to keep making money.
A person from Meta said the report is only showing a small, old part of what they do.
But, the report also says Meta's own studies show a lot of scams that happen in the US happen on their apps.
It seems like sometimes making money might be more important than keeping people safe online.
Internal documents reportedly indicate Meta may have earned nearly $16 billion from scam and banned product advertisements.
The company allegedly earns close to $7 billion annually from ads promoting fake stores, investment traps, and crypto frauds.
Meta reportedly only bans advertisers when its automated systems are 95% certain of fraud, allowing dubious ads to persist.
Regulators, including the US SEC and UK authorities, are increasing scrutiny and investigating Meta's ad practices.
Meta spokesperson Andy Stone claims the leaked materials present a 'selective and outdated view' of the company's operations.
- Who
- Meta Platforms Inc. (owned by Mark Zuckerberg)
- What
- Reportedly earned billions from scam advertisements, raising concerns about user safety and prompting regulatory scrutiny.
- When
- Leaked internal documents cover periods with projections for 2024; reports emerged recently.
- Where
- Global social media platforms (Facebook, Instagram) and US/UK regulatory bodies.
- Why
- To generate advertising revenue, with internal documents suggesting a significant portion comes from fraudulent ads despite stated efforts to combat them, leading to regulatory investigations into whether financial priorities outweigh safety.
Reuters Report on Leaked Internal Documents
Meta Spokesperson's Statement
Projected Revenue from Scam Ads
Reuters Report on Leaked Internal Documents
Internal documents suggest Meta earned nearly $16 billion (10% of annual revenue) from scam ads, with an estimated $7 billion annually from this category alone. The company reportedly bans advertisers only when 95% certain of fraud, allowing many dubious ads to persist.
Meta Spokesperson's Statement
Meta's spokesperson stated that the leaked materials provide a 'selective and outdated view' of the company's operations. Insiders suggest financial priorities still outweigh safety measures.
Meta's Awareness and Action on Scams
Reuters Report on Leaked Internal Documents
Leaked documents indicate Meta executives debated how much ad revenue they were willing to lose to reduce scams, suggesting internal awareness but a reluctance for strong corrective action. Meta's own analysis reportedly shows its platforms are linked to nearly one-third of all successful scams in the US.
Meta Spokesperson's Statement
Meta's spokesperson contested the report, implying the presented data is not current or comprehensive. The company claims it has countermeasures and is committed to user safety despite these allegations.
- Projected Annual Revenue from Scam Ads
- Nearly $16 billion (approx. 10% of total annual revenue)
- Estimated Annual Revenue from 'Higher Risk' Ads
- Close to $7 billion
- Banning Threshold for Advertisers
- 95% certainty of fraud by automated systems
- Regulators Investigating
- US Securities and Exchange Commission (SEC), UK regulators
- Potential Penalties
- Up to $1 billion
- Meta's Platforms' Link to US Scams
- Nearly one-third of all successful scams
Sources
Meta eyed $16 billion from ads for scams, banned products, documents show
Mark Zuckerberg drops below top 5 richest people, loses $5 billion wealth as Meta stock slides 2.3% — here's why
Meta earned $16 billion from scam ads in 2024: Report
