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Internal company documents reviewed by Reuters reveal that Meta Platforms projected it would earn about 10% of its 2024 annual revenue, roughly $16 billion, from advertisements linked to scams and banned goods across Facebook and Instagram. This revelation comes amid mounting global concern over fraudulent ads and inadequate enforcement on major social media platforms.
A Flood of High-Risk Ads
Meta’s internal systems reportedly identified an estimated 15 billion “higher-risk” scam ads every day in December 2024, those showing clear signs of deception. Despite this, Meta estimated it generated $7 billion annually from this specific category of ads. The company’s automated systems only banned advertisers when they were flagged with 95 percent certainty of fraud. In lower-certainty cases, Meta instead charged higher ad rates through a system known internally as “penalty bids.”
It was also revealed that more than half of all cryptocurrency-related ads on Meta platforms had already been flagged as scams or policy violations by regulators such as Australia’s ACCC. In Europe, watchdogs cited similar patterns, saying the company profited heavily from deceptive financial promotions.
Systemic Issues in Enforcement
According to internal audits, Meta’s personalization algorithms actively amplified scam ads. Users who engaged with fraudulent ads were statistically more likely to be shown similar content, turning the ad system into a feedback loop for deception. Documents also revealed that Meta ignored or rejected 96 percent of user-reported scam ads in 2023, citing “low enforcement priority.”
Thousands of explicit and deepfake ads, including fake celebrity endorsements, slipped through Meta’s filters, the research went on to uncover. One Canadian case detailed hackers hijacking a military recruiter’s verified Facebook account to run crypto scams for weeks, resulting in losses of tens of thousands of dollars for victims.
One internal presentation cited by Reuters admitted that Meta’s platforms were responsible for one-third of all successful scams in the United States, and that in internal reviews, staff described the company’s ecosystem as “easier to advertise scams on than Google.” Meanwhile, MediaNama reported that Meta’s ad safety teams were slashed during company-wide layoffs, with internal notes saying staff were told to “keep the lights on” as moderation resources were reallocated.
Financial vs. Ethical Trade-Offs
Meta executives allegedly weighed enforcement actions against the company’s financial performance. A 2025 review stated that Meta’s fraud prevention team was instructed not to pursue any action that would reduce company revenue by more than 0.15 percent, roughly $135 million out of $90 billion earned in the first half of 2025. Internal memos described scam ads as “low-severity” issues, more of a user-experience nuisance than a regulatory threat.
A separate report found that scam campaigns worth up to $67 million per month were only removed after major media exposure, and repeated Facebook scams falsely promising government “tariff relief” payments, which remained active for months despite thousands of user complaints.
Meta spokesperson Andy Stone responded, saying the leaked documents “present a selective view that distorts Meta’s approach to fraud and scams.” He added that the 10% internal estimate was “rough and overly inclusive” and declined to provide an updated figure.
Regulatory and Reputational Risk
Regulators in the United States, United Kingdom, and Australia have intensified scrutiny of Meta’s advertising practices, particularly around payment-related scams. Some regulators have threatened fines of up to $1 billion, but analysts note that the company appears to earn far more from scam-linked ads than it anticipates paying in penalties.
Industry experts now warn that Meta’s business model, which depends heavily on automated ad distribution, has created a systemic vulnerability. The company’s own algorithms, optimized for engagement and revenue, have become fertile ground for fraud, leaving billions of users exposed to deception.
