Internal company documents reveal that Meta projected earning approximately 10% of its 2024 revenue (roughly $16 billion) from running advertisements for scams and banned goods across Facebook, Instagram and WhatsApp (1).
Even more alarming: the social media giant estimates that every day, its platforms show users an estimated 15 billion scam advertisements that are clearly fraudulent (2).
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According to documents reviewed by Reuters, for three years or longer, Meta has not adequately identified and ended the deceptive advertising, exposing billions of users to fraudulent investment and e-commerce schemes, illegal online casinos and banned medical products.
Why Meta isn’t stopping the flood of scams
Meta’s automated systems only ban advertisers if they’re at least 95% certain to be committing fraud (3). Below that threshold, the company simply charges suspect advertisers higher ad rates as a penalty rather than removing them entirely. But this approach doesn’t always discourage the ad placement, still allowing potential fraudulent activity to run, and Meta to profit from it.
The situation worsens once you click on a scam ad. Meta’s ad-personalization system means users who click on fraudulent advertisements are deemed "interested" in them and are therefore likely to see even more of them.
But this might not be the only reason the company isn’t doing more to stop the ads in question.
Meta spokesman Andy Stone disputed the characterization, Reuters reports, stating the internal revenue estimate was "rough and overly-inclusive" and included "many" legitimate ads (4).
In a statement, he said, "Over the past 18 months, we have reduced user reports of scam ads globally by 58% and, so far in 2025, we’ve removed more than 134 million pieces of scam ad content (5)."
Internal documents show Meta imposed internal guardrails on its trust-and-safety teams, specifically including limits on how much revenue the company was willing to lose by removing suspicious advertisers. If too many fraudulent advertisers needed to be taken down and the resulting revenue loss exceeded that cap, the team had to scale back enforcement.
The devastating cost to Americans
According to the Federal Trade Commission, Americans lost more than $12.5 billion to fraud in 2024, up 25% from 2023 (6). Social media platforms played an outsized role, with losses from scams initiated on these platforms hitting $1.9 billion in 2024 (7).
Meta’s platforms were involved in approximately a third of all successful scams in the U.S., according to the company’s own research from May this year (8). And a British regulator found Meta’s products were involved in 54% of 2023’s payment-related scam losses, which is more than double that of all other social platforms combined (9).
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How to spot a scam ad before you click
Given Meta’s enforcement challenges, users must become their own first line of defense against scam ads. Here’s how:
- Watch for unrealistic prices. If luxury items or electronics are offered at shockingly low prices, it’s almost certainly a scam.
- Verify the account. Legitimate accounts should have verified badges, real followers and complete bios with website and contact information. Check Facebook’s Page Transparency section to see when a page was made, as scam pages are often newly created.
- Research independently. Close the ad and visit legitimate, known websites directly rather than clicking through from social media.
- Check URLs carefully. Hover over ad links to see the full URL and ensure it matches the company’s official website.
- Beware of urgency tactics. Phrases like "Limited-time offer" or "Only a few left" pressure you into hasty decisions.
Use credit, not debit
If you do decide to purchase through a social media platform, use a credit card, not a debit card. This is your most important protection. According to the Fair Credit Billing Act, your maximum liability for fraudulent credit card transactions is $50 (10). Many cards offer zero liability protection, and credit card companies must investigate disputes and can issue chargebacks.
Debit cards, on the other hand, offer less protection under federal law. If a lost or stolen debit card is reported within two business days, maximum liability is $50. After that, but before 60 days, it increases to $500. Beyond 60 days, you may be responsible for all fraudulent charges. And critically, money comes directly from your checking account, leaving you without funds during investigations.
What to do if you’ve been scammed
If you think you’ve been scammed, be sure to contact your bank or credit card issuer immediately. Most issuers will freeze your account and issue a new card. From there, report to the FTC by filing a report at ReportFraud.ftc.gov. While the FTC doesn’t intervene in individual complaints, reports help build cases against scammers.
You should also report the ad to Meta and document absolutely everything. Save screenshots of the ad, emails, receipts, and any communication with the seller for bank disputes.
Meta’s platforms have become one of the largest global pipelines for fraudulent ads — and even with new initiatives underway, internal documents reveal major structural obstacles that make truly aggressive enforcement unlikely anytime soon. Exercising a little caution can keep a single click from turning into a very expensive mistake.
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Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Reuters (1, 2, 3, 4, 5, 8, 9); Federal Trade Commission (6, 7); Legal Information Institute (10)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.