Internal Documents Reveal: Fraudulent Ads a Key Profit Engine for Meta

According to Reuters, Meta’s internal documents revealed that about 10% of the company's 2024 revenue (approximately $16 billion) originated from fraudulent ads and advertisements for banned goods.

Internal materials spanning finance, lobbying, engineering, and security indicate that Meta failed to identify and block a significant volume of investment scams and other harmful ads for at least three years, leaving Facebook, Instagram, and WhatsApp users exposed to related risks.

A December 2024 document reveals Meta displayed roughly 15 billion "high-risk" scam ads daily to users. Another year-end document indicates the company earns about $7 billion annually from such advertisements.

Meta exhibits hesitation toward taking stringent measures that could harm its commercial interests. Documents reveal that the company only bans accounts when its automated systems detect a fraud probability exceeding 95%, even if their activities have triggered internal warning systems. For suspected fraudulent advertisers, Meta imposes higher advertising fees as a penalty to limit their continued ad placements.

The documents also show that Meta's ad personalization system pushes ads based on user interests, meaning those who have clicked on fraudulent ads are more likely to encounter similar content.

Meta spokesperson Andy Stone responded in a statement that the documents viewed by Reuters "present a selective view that distorts Meta’s approach to fraud and scams." He further stated that the conclusion that 10% of revenue comes from fraudulent and non-compliant ads is "rough and overly-inclusive," as subsequent reviews found it included "many" legitimate ads. However, he declined to provide specific updated figures.

Meta's internal documents also acknowledge that its products have become a key pillar of the global fraud economy. A May 2025 security department presentation noted that approximately one-third of successful fraud cases in the U.S. involved Meta platforms. Meanwhile, UK regulators reported last year that 54% of payment-related fraud losses in 2023 were linked to Meta’s products, more than double the combined fraud losses from all other social media platforms.

BrokersView reminds you

Social media platforms are increasingly becoming breeding grounds for investment fraud. Fraudsters exploit their vast user bases to target more potential victims, causing them to be deceived and suffer significant financial losses.

Investors are advised to exercise caution when considering investment advice or services from unconventional channels like social media platforms, as they often conceal substantial fraud risks.

Before investing, you can verify a broker's regulatory status through BrokersView to avoid unlicensed service providers.