A new Reuters investigation has uncovered that Meta Platforms Inc. — the parent company of Facebook, Instagram, and WhatsApp — may be profiting massively from fraudulent advertisements and illegal promotions circulating across its platforms. According to the leaked internal data, up to 10% of Meta’s total annual revenue, equivalent to around $16 billion, could be linked to scam-related ads and prohibited products.
These ads include everything from fake investment schemes and fraudulent online casinos to unauthorized pharmaceutical promotions. The report suggests that Meta’s platforms are involved in roughly one-third of all successful scam operations in the United States, highlighting the growing scale of online ad abuse.
Researchers estimate that Meta displays up to 15 billion fraudulent ads daily, and despite years of internal investigations, the company has failed to stop the influx of malicious advertising. Another internal document cited by Reuters claims that Meta earns $7 billion annually from scam-related content alone.
The report exposes how Meta’s internal advertising systems actually help amplify fraudulent content. Once a user clicks on a scam ad, the company’s personalization algorithm shows similar ads more frequently, trapping victims in a cycle of deceptive promotions. Insiders told Reuters that even Meta’s employees struggled to counteract the wave of fraud, as company policies often favor revenue retention over strict enforcement.
Small advertisers accused of promoting scams reportedly need at least eight complaints before facing suspension, while large advertisers enjoy even more leniency — with some receiving up to 500 violation warnings before being banned. Just four advertising firms banned this year generated $67 million for Meta before being removed.
In its defense, Meta spokesperson Andy Stone argued that the 10% estimate was “approximate and inflated,” asserting that Meta has reduced scam-related reports by 58% globally over the past 18 months and removed more than 134 million deceptive ads in 2025 alone. Still, regulatory authorities remain skeptical.
The U.S. Securities and Exchange Commission (SEC) is now investigating Meta’s role in hosting financial scam ads, while in the United Kingdom, regulators reported that Meta’s platforms were responsible for 54% of all payment fraud losses in 2023 — more than all other social networks combined.
Despite the mounting evidence, Meta seems reluctant to take aggressive measures. Insiders revealed that executives chose not to implement costly anti-fraud measures that could impact more than 0.15% of overall company revenue, prioritizing profit preservation over platform integrity.
By the end of 2024, Meta executives proposed a “moderate anti-fraud strategy” to CEO Mark Zuckerberg, focusing primarily on markets where regulatory actions are expected soon. Internal targets show Meta aims to reduce its fraud-related revenue from 10.1% in 2024 to 7.3% in 2025, and further down to 5.8% by 2027.
Conclusion:
The revelations highlight a growing ethical and regulatory challenge for Meta, whose platforms remain central to global communication and digital marketing. As governments tighten oversight and users grow increasingly aware of online fraud, Meta faces mounting pressure to balance profit with accountability. If the company fails to act decisively, it risks not only severe penalties but also long-term reputational damage in an already trust-fragile digital ecosystem.
