According to a new report from Reuters, internal documents reveal that Meta projected around 10% of its 2023 revenue, roughly $16 billion, came from fraudulent ads running across its platforms.
The report claims that for at least three years, Meta failed to adequately protect users from scam campaigns promoting illegal gambling, fake investments, and banned medical products. These ads often mimicked legitimate offers to deceive users into making payments or sharing personal information.
Internally, Meta uses a system to estimate the likelihood that an advertiser is running a scam. But unless the system is 95% certain of fraud, the company reportedly allows the ads to continue, even charging higher prices to those suspected of misconduct, under the logic that it might discourage bad actors.
When those advertisers pay anyway, Meta’s bottom line benefits.
Asked for comment, Meta spokesperson Andy Stone told Reuters the documents “present a selective view that distorts Meta’s approach to fraud and scams.” He 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 ads across its apps.
Still, the revelation raises major questions about the ethical cost of ad-driven revenue models, and whether platforms can truly self-police when fraud itself fuels profit.