A shocking new investigation suggests that Meta could have earned nearly one-tenth of its 2024 ad revenue from scam-related ads.
In a revelation that has sparked global concern, internal documents reviewed by Reuters reportedly show that Meta Platforms Inc., the parent company of Facebook and Instagram, generated about Meta $16 billion report of its 2024 ad revenue from fraudulent, scam, or banned-goods advertisements. That is nearly 10% of the company’s total ad income. It raises serious concerns about the technology firm’s ad-monitoring practices and ethical boundaries.
Billions of Scam Ads Every Day
These internal files, which were leaked, revealed that Meta‘s systems were exposing users to roughly 15 billion “higher-risk” scam ads daily as of late 2024. These ranged from phony investment schemes and counterfeit product listings to deceptive brand impersonations and deepfake celebrity endorsements.
The documents also indicate that Meta‘s automated enforcement system only bans advertisers when its fraud-detection algorithm reaches a certainty threshold of 95%. When the certainty is lower, the platform often lets those ads run, sometimes applying a penalty fee rather than removing the advertiser from the platform.
Critics say such lenient thresholds let through a deluge of scam ads, placing millions of users at risk while earning the company billions of dollars in revenue.
Profit Over Protection?
But perhaps the most controversial revelation is that Meta allegedly set “revenue guardrails” on its enforcement system, limiting how many ads could be removed if doing so would hurt revenue beyond a small threshold, around 0.15% of total income.
This internal balancing act between safety and profit appears to have constrained teams trying to clamp down on fraudulent advertisers. Experts say that reflects a deeper tension in social-media economics: stricter ad enforcement protects users but cuts into earnings.
A former Meta safety specialist told Reuters that the company’s priorities changed in recent years, as layoffs and restructuring reduced the number of staff focused on ad integrity. “The incentives were clear – more ads mean more revenue,” the source said.
Meta $16 billion report: Meta Pushes Back
In response, a Meta spokesperson strongly denied the characterization of the findings, calling the internal figures “selective and outdated.”
“The idea that Meta profits from scams is completely misleading,” said the company. “We remove millions of scam ads every day and invest heavily in AI and human review teams to fight abuse.”
Meta also pointed to improvements in its ad-safety systems, with a significant reduction in user-reported scams in the past year. It, however, did not dispute that some of its revenue came from higher-risk advertisers, only that the $16-billion estimate was an internal projection rather than a verified figure.
Regulators and Lawmakers React
The revelations have already caught the attention of regulators in the U.S., U.K. and European Union, who are investigating whether platforms like Meta are doing enough to protect users from fraud. Several governments have hinted at possible penalties or tighter ad-transparency laws.
Industry watchers say Meta may see increased scrutiny, similar to pressures put on the company over misinformation and data privacy in recent years. The findings also risk damaging user trust — particularly with scams continuing to target vulnerable consumers and small businesses.
The Bigger Picture
The Meta controversy illustrates a wider problem in the digital advertising business: a scale versus safety tension. Billions of ads are delivered every day with the help of automated systems; even a small fraction of fraud can translate into staggering sums of money.
The increasing realism of deepfakes and synthetic content generated by AI presents platforms with a growing challenge: verifying authenticity while keeping profits.
For now, the figure is an estimate of $16 billion — but it points to a very important question for Big Tech: Can social-media giants really clean up their ad ecosystems without sacrificing revenue? Meta insists that it can. But regulators, advertisers, and users around the world are about to find out whether the company’s promises match the reality behind its algorithms.
