Meta Platforms, the parent company of Facebook and Instagram, is under renewed scrutiny after internal documents revealed that as much as 10% of its total 2024 revenue roughly $16 billion came from advertisements promoting scams and prohibited products, according to a Reuters investigation published Thursday.
The report paints a stark picture of the world’s largest social media advertiser, suggesting that the company’s efforts to weed out fraudulent promotions have been undermined by the sheer volume of deceptive ads, and by its own financial dependence on them.
Billions in “High-Risk” Ads Every Day
The leaked internal documents reportedly show that Meta served around 15 billion high-risk scam ads every day across its platforms last year. These included promotions for fraudulent investment schemes, illegal gambling sites, fake e-commerce operations, and banned medical products.
A December 2024 internal report cited by Reuters estimated that Meta generates about $7 billion annually from clearly deceptive ads alone. The company had internally labeled these as “higher risk” due to their potential to violate policies or harm users.
Despite this, Meta’s total 2024 revenue reached $164.5 billion, with advertising still the dominant driver of growth. The company’s third-quarter sales jumped 26% year-over-year to $51.24 billion, fueled in part by its massive push into artificial intelligence to optimize ad delivery.
Internal Tensions Over Enforcement
The documents also suggest that Meta’s leadership has long been aware of the scale of fraudulent activity on its platforms, and the potential financial risks of cracking down too hard. Some internal projections reportedly warned that an “abrupt removal” of scam ads could negatively affect overall ad revenue and growth targets.
While Meta has publicly championed transparency and user safety, the internal data points to a difficult trade-off: aggressive enforcement could mean a significant hit to its bottom line.
In response to the report, a Meta spokesperson said the company “aggressively” removes scam and fraud ads and uses advanced AI systems to detect and prevent abuse before it reaches users.
“The 10% figure was a rough and overly-inclusive estimate rather than a definitive or final number,” the spokesperson said. “Subsequent review revealed that many of these ads weren’t actually violating our policies.”
They added that the leaked documents offer a “selective view” of Meta’s efforts, focusing on problem measurement rather than the broader scope of solutions the company employs.
Balancing Growth and Integrity
Meta’s struggle is emblematic of a broader challenge across digital advertising. Platforms that rely heavily on automated systems and massive ad volumes face constant tension between maximizing revenue and maintaining ad integrity.
With more than 3 billion users across its apps, Meta’s advertising ecosystem has become a magnet for both legitimate businesses and malicious actors seeking easy reach. Critics argue that the company’s moderation systems while technically advanced are still reactive, often catching scams only after users have already been affected.
As Meta continues to pour billions into AI development, it insists those same technologies will strengthen its fight against fraudulent content. But as the Reuters report suggests, the company’s financial ties to problematic ads remain a deeply uncomfortable reality one that may test how far Meta is willing to go to protect its users over its profits.
