Meta Profits Billions from Scam Ads on Facebook, Other Apps While Struggling to Rein Them In

Meta ads are everywhere. You can see it on various social media platforms we use, including Facebook and Instagram. Some of them are scams and promote illegal products. The worst part here is that the tech giant doesn't do anything and instead earns billions of dollars from them.

The company estimated this year that such scam-related advertising might make up as much as 10 percent of revenue, or about $16 billion, for 2024. The ads include fraudulent e-commerce and investment schemes, illegal online casinos, and banned medical products. Meta's apps were found to be responsible for approximately a third of all successful scams in the US.

Internal Challenges and Enforcement Gaps

As per Reuters' report, the investigation also reveals how internal Meta processes have, at times, set back efforts to stop scam ads. Smaller advertisers of financial fraud may not be blocked until they have been flagged multiple times-up to eight strikes.

Larger advertisers reportedly receive even more leniency, with some receiving more than 500 violations without being taken down. This leniency suggests that, for Meta, revenue is a higher priority than strict enforcement, raising concerns about the responsibility of this platform to protect its users.

Revenue Stakes and Executive Pressure

The financial stakes for Meta are immense. In fact, according to Reuters, four ad campaigns removed this year alone accounted for $67 million in revenue.

Internal communications reportedly advised managers not to take any action that would cost the company more than 0.15% of its total revenue. This guidance appears to reflect that profit considerations may have limited the platform's willingness to crack down on scam advertising aggressively.

Meta replied to a Reuters' question, characterizing the 10% revenue estimate from scam ads as "rough and overly-inclusive" and did not provide an updated figure.

Engadget took note of spokesperson Andy Stone's statement about this report:

"Over the past 18 months, we have reduced user reports of scam ads globally by 58 percent and, so far in 2025, we've removed more than 134 million pieces of scam ad content."

While Meta was able to crack down on spammy Facebook posts, it didn't do much about its ads. In 2023, Tech Times reported that it actually failed to curb fraud on its apps. Several victims complained about fraud, but they did not receive any response.