Meta may have earned as much as $16 billion last year from fraudulent advertisements across its apps—about 10% of its total annual revenue—according to internal documents cited in a recent report. The documents also indicate that, over a three-year period, the company failed to adequately shield users from ads promoting illegal gambling, investment schemes, and banned medical products. These scam ads often dangle products or services that don’t exist, aiming to extract money or personal information from unsuspecting users.
The report describes how Meta’s ad systems score the likelihood that a campaign is fraudulent. An advertiser’s account is only deactivated when the system is 95% certain of wrongdoing. If the system suspects fraud but falls short of that threshold, Meta increases the cost of ads as a deterrent. When questionable advertisers continue buying regardless, the higher prices end up boosting the company’s revenue.
A company spokesperson, Andy Stone, pushed back on the characterization, saying the documents present a selective view that distorts Meta’s approach to fraud and scams. Stone added that, over the past 18 months, user reports of scam ads have dropped by 58%, and the company has removed more than 134 million scam advertisements from its platforms.
Why this matters: scam ads erode user trust, expose people to financial and privacy risks, and undermine the integrity of digital advertising. The revelations highlight the tension between automated enforcement thresholds and real-world harm, renewing scrutiny of how platforms balance revenue, detection accuracy, and user safety.
