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highplainsdem

(59,027 posts) Thu Nov 6, 2025, 04:50 PM Nov 6

Meta is earning a fortune on a deluge of fraudulent ads, documents show

Source: Reuters

Meta internally projected late last year that it would earn about 10% of its overall annual revenue – or $16 billion – from running advertising for scams and banned goods, internal company documents show.

A cache of previously unreported documents reviewed by Reuters also shows that the social-media giant for at least three years failed to identify and stop an avalanche of ads that exposed Facebook, Instagram and WhatsApp’s billions of users to fraudulent e-commerce and investment schemes, illegal online casinos, and the sale of banned medical products.

On average, one December 2024 document notes, the company shows its platforms’ users an estimated 15 billion “higher risk” scam advertisements – those that show clear signs of being fraudulent – every day. Meta earns about $7 billion in annualized revenue from this category of scam ads each year, another late 2024 document states.

Much of the fraud came from marketers acting suspiciously enough to be flagged by Meta’s internal warning systems. But the company only bans advertisers if its automated systems predict the marketers are at least 95% certain to be committing fraud, the documents show. If the company is less certain – but still believes the advertiser is a likely scammer – Meta charges higher ad rates as a penalty, according to the documents. The idea is to dissuade suspect advertisers from placing ads.

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Read more: https://www.reuters.com/investigations/meta-is-earning-fortune-deluge-fraudulent-ads-documents-show-2025-11-06/

Much more at the link.

Starting with a paragraph about Meta's ad-personalization system delivering more of these scams to people gullible enough to click on any of the them.

2 replies

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Meta is earning a fortune on a deluge of fraudulent ads, documents show (Original Post) highplainsdem Nov 6 OP

How delightful. Miguelito Loveless Nov 6 #1

10% of revenue by internal estimates? I wonder what the actual figure is. Ilikepurple Nov 6 #2

Miguelito Loveless

(5,356 posts)

1. How delightful.

Reply to highplainsdem (Original post)

Thu Nov 6, 2025, 05:01 PM

Nov 6

If we think you are a scammer, but are not certain, we'll just charge you more money.

$16 BILLION!!!!

Ilikepurple

(393 posts)

2. 10% of revenue by internal estimates? I wonder what the actual figure is.

Reply to highplainsdem (Original post)

Thu Nov 6, 2025, 05:25 PM

Nov 6

Their business model is built, at least in part, on allowing fraudulent advertisements. Sort of like the ads that used to be in the back of comics or some magazines. At least then you knew you were in the specious or outlandish claims area of the advertising when you got to the X-ray specs or build your own submarine ads. I also wonder how this lax enforcement affects the truth in reputable companies advertisement. It seems that our courts and legislatures have a tough time not letting burgeoning industries set their own laws and standards. I wish the branches of federal and state governments would be more proactive in battling fraud, especially online and over the phone. I’m getting at an age where I seeing elderly friends and family having a really tough time navigating around the fraudulent calls and social media advertisements. It’s only going to get tougher as AI improves and is more widespread. I have a landline that’s mainly just a fraudulent call screener.

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