A new investigation by Reuters, based on internal Meta documents, reveals a startling truth: the social media giant is making billions of dollars annually from scam ads displayed across its platforms. The sheer volume of these deceptive advertisements is staggering – an estimated 15 billion “higher risk” scam ads are shown to users every single day.
These scams range from fraudulent e-commerce schemes and investment pitches promising unreal returns, to illicit online casinos and the sale of banned medical products. While encountering scammy ads has become a frustratingly common experience for internet users, this report exposes how deeply ingrained these practices are within Meta’s business model.
According to Reuters, internal documents project that as much as 10% of Meta’s projected ad revenue in 2024 will stem directly from such questionable sources. This translates to a staggering $7 billion in annualized revenue fueled by fraudulent activities.
The investigation further reveals that Meta’s own safeguards against these scams are demonstrably inadequate. Internal documents indicate that the company only takes action against advertisers when its automated systems predict, with at least 95% certainty, that they are engaging in fraud. This exceptionally high threshold essentially means many likely scammers slip through the cracks. Instead of outright bans, these less-than-certain culprits face a financial penalty: increased ad costs. This “pay-to-play” system might deter some fraudsters, but it ultimately profits Meta significantly – billions every year – while users remain vulnerable.
The report highlights a troubling disconnect between Meta’s public pronouncements about combating harmful content and its internal practices. While the company publicly strives to present a safe online environment for its billions of users, these revelations expose how prioritizing profit often overrides user protection. This raises critical questions about the ethical responsibilities of large tech platforms like Meta in regulating the content displayed on their sites and the effectiveness of their self-regulatory mechanisms.
