Meta Platforms is reportedly deriving around 10% of its annual revenue—an estimated $16 billion—from fraudulent advertisements, according to internal company documents obtained by Reuters.
The leaked files reveal that Meta failed over a three-year period to adequately curb ads promoting illegal gambling, fake investment schemes, and banned medical products. These deceptive campaigns often target unsuspecting users with non-existent products and services designed to extract payments or data.
Meta’s internal system flags campaigns likely to be scams but only shuts down an advertiser’s account when it is 95% certain of fraud. Otherwise, the company raises ad costs for suspicious accounts as a deterrent, though those charges still contribute to Meta’s bottom line.
When contacted by TechCrunch, Meta did not immediately respond. A spokesperson, Andy Stone, later told Reuters that the report presented a “selective view” that misrepresented Meta’s anti-fraud efforts. He added that the company had reduced user reports of scam ads by 58% over the last 18 months and removed more than 134 million fraudulent ads from its platforms.
