Meta Faces Billions in Revenue from Scam Ads, Internal Docs Reveal
Meta reportedly earns billions annually from fraudulent advertisements across Facebook, Instagram, and WhatsApp, according to newly revealed internal documents. The tech giant projected $16 billion in 2024 revenue from scam ads, representing about 10% of its total income.
Key Takeaways
- Meta internally projected $16 billion (10% of revenue) from scam and prohibited ads
- Company shows users 15 billion “higher risk” scam ads daily
- Meta earns $7 billion annually from clearly fraudulent advertisements
- Only bans advertisers when 95% certain of fraud, otherwise charges penalty rates
Scale of the Problem
The internal documents, created between 2021 and 2025, reveal Meta’s platforms display approximately 15 billion “higher risk” scam advertisements daily. These ads show clear signs of being fraudulent yet generate about $7 billion in annual revenue for the company.
For at least three years, Meta failed to identify and stop the flood of ads exposing billions of users to scams and illegal products including fraudulent e-commerce schemes, investment scams, illegal online casinos, and banned medical products.
Meta’s Controversial Approach
Internal systems flag suspicious marketers, but Meta only bans advertisers when automated systems predict at least 95% certainty of fraud. For advertisers deemed likely scammers but falling below this threshold, Meta charges higher ad rates as a penalty rather than removing their ads entirely.
The company’s ad-personalization system means users who click on scam ads are likely to see more similar content, potentially trapping vulnerable users in cycles of fraudulent offers.
Regulatory Concerns
Sandeep Abraham, a fraud examiner and former Meta safety investigator, highlighted the regulatory gap:
“If regulators wouldn’t tolerate banks profiting from fraud, they shouldn’t tolerate it in tech,” he told Reuters.
Meta’s Response
Meta disputed the characterization, calling the documents “a selective view that distorts Meta’s approach to fraud and scams.” The company described its internal 10.1% revenue estimate as “rough and overly-inclusive” but declined to provide updated figures.
“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,” a spokesperson stated.
The company reported reducing user scam ad reports by 58% globally over 18 months and removing over 134 million pieces of scam ad content in 2025 alone.
