Users of Facebook are familiar with the frequent presence of deceptive ads and posts from fraudsters. However, the extent of this problem is well-known to Meta, the parent organization, which reportedly calculated that 10% of its projected 2024 earnings—equivalent to $16 billion in U.S. dollars—originated from promotions linked to identified or potential scammers.
According to a critical analysis by Reuters, Meta's leadership recognizes the severity of this issue yet appears reluctant to implement meaningful measures to address it. Documents obtained by the publication indicate that the firm monitors fraudulent schemes propagating on Facebook, Instagram, and WhatsApp, including those promoting illicit gambling sites, adult entertainment, or bogus medical offers, but resists aggressive interventions that could diminish income from these illicit operators who invest significantly in visibility on Meta's networks.
Meta's internal analyses, as uncovered in the probe, highlight the pivotal role its platforms play in facilitating deceptions, with roughly one in three effective cyber frauds aimed at American targets relying on Meta's services. Furthermore, the company determined that its sites, along with Facebook, Instagram, and WhatsApp, attract such exploitation due to their relative simplicity compared to rivals. One document from this April states, 'Promoting fraudulent schemes is simpler on Meta's services than on Google's.'
These deceptive operations stem from entities utilizing Meta's official paid promotion tools, distinct from those simply mimicking everyday or notable figures. One might expect tighter oversight for such verified promoters, implying platform endorsement, yet evidence suggests otherwise.
Enforcement practices reportedly varied by spending level, requiring at least eight complaints from users to suspend basic accounts, while major investors disseminating misinformation and luring targets could accumulate over 500 reports without repercussions. This approach resembles loot box mechanics in games or gambling apps, encouraging high rollers to persist despite evident wrongdoing.
The investigation identified two unauthorized gambling websites that continued placing Facebook promotions for over half a year, despite detection by Meta's detection tools and even being labeled the 'Scammiest Scammer' in company memos.
Meta's algorithmic safeguards do detect and sometimes curb fraudulent promoters. Nonetheless, the publication suggests the firm limits its efforts when financial gains are involved. In the ad bidding process—akin to widespread online auction systems—the platform marks dubious bidders but, rather than blocking them or rejecting offers, raises their costs. This aims to deter offenders theoretically, while potentially boosting Meta's profits if they opt to cover the higher fees.
Staff responsible for curbing damaging promotions across Facebook, Instagram, and WhatsApp face explicit limits on proactive enforcement. In February, the unit handling scam ad removals was prohibited from measures that could trim overall income by even 0.15%. Records reveal worries over possible regulatory penalties for user vulnerabilities, projected below $1 billion—far below the earnings from suspected fraud.
The Reuters piece depicts Meta as troubled by illicit actors exploiting its services to deceive users, particularly those posing as public figures, businesses, or officials, but far more focused on safeguarding ad income from these sources.
When asked about the matter, Meta spokespeople did not dispute the authenticity of the sourced materials. Spokesperson Andy Stone described the cited estimates as 'approximate and too broad,' noting revised data excluded certain valid promotions. He offered no supporting updates on current numbers.
Certain records outline Meta's initiatives to combat deceptions, illicit activities, and misuse, targeting a drop in scam-related ad revenue share from 10.1% in 2024 to 7.3% in 2025. Stone stated that over the past 18 months, reported user scams fell by 58%, with over 134 million instances of fraudulent ad material taken down.