Meta Under Fire as Internal Documents Reveal Billions in Revenue from Scam Ads

Meta faces intense scrutiny after leaked internal documents suggest the company earns approximately $16 billion annually—roughly 10% of its total revenue—from scam advertisements and promotions for banned goods, according to a Reuters investigation published November 6.

The explosive report claims Meta's platforms show users an estimated 15 billion "higher risk" scam advertisements daily, despite growing user complaints and the trillion-dollar global impact of online scams in the past year. This revelation raises serious questions about the social media giant's ad practices and potential regulatory consequences.

The scope of Meta's scam ad problem

The internal documents obtained by Reuters paint a troubling picture of Meta's approach to fraudulent advertising. According to company records from December 2024, Meta knowingly displays billions of advertisements with clear signs of being fraudulent across Facebook and Instagram each day.

This revelation aligns with widespread user experience. Many Facebook and Instagram users have long complained about deceptive ads appearing in their feeds, often reporting them without apparent action from the company. The prevalence of these scams is part of why businesses need to train employees to recognize Facebook scams to protect both personal and company resources.

Most concerning, the documents suggest Meta deliberately avoids acting on potential scams unless its systems can determine they are fraudulent "with 95% accuracy"—a high threshold that allows many questionable ads to remain active.

The company's ad personalization system appears to exacerbate the problem. Users who click on scam ads are more likely to see additional similar content, creating a dangerous cycle for vulnerable users who may be repeatedly targeted.

Financial incentives and market impact

Beyond the direct revenue from scam advertisements, these promotions may have broader financial benefits for Meta. The company's advertising costs have been rising steadily, reflecting increased demand for ad space across its platforms.

This suggests scam advertisements contribute to higher advertising prices for all legitimate businesses using Meta's platforms by increasing competition for limited ad inventory. The financial incentive to continue allowing questionable ads may therefore exceed the reported $16 billion figure.

The global impact of such practices is substantial. According to the Global Anti-Scam Alliance's "2025 Global State of Scams" report, approximately 23% of adults worldwide have had money stolen by scammers, with victims collectively losing at least one trillion dollars in the past year alone. The numbers are even more alarming in South America and Africa, where 41% of adults have fallen victim to scams.

Meta's response and potential consequences

Meta has strongly contested the Reuters report, claiming the internal documents were not intended for public consumption and don't represent the complete picture. The company points to its ongoing efforts to combat fraudulent advertising, noting that user reports of scam ads have decreased by 58% globally in 2025.

However, the revelations have already attracted attention from regulatory bodies worldwide. Industry experts anticipate investigations that could result in substantial fines and increased oversight of Meta's advertising practices.

For any penalties to be effective, they would likely need to exceed the revenue Meta generates from questionable advertisements. Some observers note that CEO Mark Zuckerberg's recently strengthened relationship with the Trump administration might help reduce regulatory scrutiny in the United States, though international regulators may take a different approach.

The controversy comes at a challenging time for Meta as it continues to invest heavily in developing metaverse technologies and artificial intelligence capabilities.

How users can protect themselves

With the prevalence of scam advertisements on social media, users should:

1. Be skeptical of offers that seem too good to be true or create urgency
2. Research companies before purchasing through social media ads
3. Report suspicious advertisements through platform tools
4. Consider using ad-blocking software for additional protection
5. Implement comprehensive social media security practices for business accounts
6. Enable two-factor authentication on all social media accounts
7. Monitor financial statements regularly for unauthorized transactions

Businesses face particularly high risks from social media scams, as company accounts are prime targets for hackers who can cause significant damage to brand reputation and customer trust when they gain access to official profiles. Small businesses are especially vulnerable, and understanding how small businesses get hacked on social platforms is crucial for prevention.

The bigger picture: Industry-wide implications

This controversy highlights a critical moment for the digital advertising ecosystem. As social media platforms become increasingly central to commerce, the pressure on companies to address fraudulent activity will likely intensify. The outcome could reshape how technology platforms approach content moderation and advertiser verification, potentially establishing new standards for digital advertising ethics.

For Meta investors, these revelations raise important questions about sustainable business practices and potential regulatory risks that could impact long-term growth prospects. Meanwhile, competitors may face increased scrutiny of their own ad verification processes as regulators examine industry-wide practices.

The revelations about Meta's scam ad revenue highlight the tension between platform responsibility and profit motives in today's digital landscape. As social media becomes increasingly central to commerce, the pressure on companies to address fraudulent activity will likely intensify.

The outcome of this controversy could reshape how technology platforms approach content moderation and advertiser verification, potentially establishing new standards for digital advertising ethics in an era where online scams continue to proliferate at alarming rates.