A damning Reuters report claims that Meta may have earned $16 billion in 2024 from ads run by known or suspected scammers, representing about 10 percent of the company’s revenue. The investigation, based on internal documents, alleges that Meta is aware of the widespread fraudulent activity across Facebook, Instagram, and WhatsApp but has been hesitant to act decisively, as doing so could reduce profits. Scammers reportedly exploit the platforms to advertise online casinos, sexual services, and healthcare scams, with some operations running for months despite internal identification as fraudulent.
The report highlights troubling enforcement practices. While Meta uses automated systems to flag potentially fraudulent advertisers, high-value accounts reportedly face minimal consequences even after hundreds of reports, while low-level accounts require multiple complaints before removal. Internal communications cited in the report indicate that some illegal casino ads persisted for more than six months and were even flagged internally as the “Scammiest Scammer.” Moreover, the automated ad auction system can inadvertently increase costs for suspected fraudulent advertisers, generating additional revenue rather than blocking harmful campaigns.
According to Reuters, Meta employees responsible for reducing scam-related advertising were restricted from taking actions that might lower company revenue by even a fraction of a percent. Internal estimates suggested that regulatory fines for inadequate consumer protection would likely remain under $1 billion, far less than the revenue gained from scammers. While Meta did not dispute the authenticity of the documents, spokesperson Andy Stone claimed the figures were “rough and overly-inclusive” and provided no updated data. The report paints a picture of a company weighing user safety against billions in revenue from advertisers linked to criminal activity.