Meta could be earning billions from scam ads on Facebook, Instagram, claims report

Meta

Meta is reportedly raking in billions from fraudulent and illegal ads across Facebook and Instagram, according to an investigation by Reuters. Internal estimates suggest that scam ads could account for as much as 10 percent of Meta’s total ad revenue — roughly $16 billion last year.

These ads, which include fraudulent e-commerce listings, illegal gambling sites, and banned medical products, are said to be so widespread that Meta’s own researchers estimated its platforms were involved in nearly one-third of all successful scams in the U.S.

Reuters also revealed that Meta’s enforcement system allows repeat offenders to continue advertising, often after being flagged multiple times. Small advertisers promoting financial fraud reportedly need to be caught at least eight times before being blocked, while larger spenders have allegedly racked up “over 500 strikes” without losing their ad privileges.

The internal dilemma, according to the report, lies in Meta’s reluctance to take actions that could meaningfully hurt its revenue. At one stage, managers were advised not to pursue enforcement measures that would cost the company more than 0.15 percent of annual income. Four major scam ad campaigns removed this year alone had generated $67 million in revenue for Meta.

In response, Meta said the 10 percent estimate was “rough and overly inclusive” but claimed progress in combating scam ads, citing a 58 percent drop in global user reports and the removal of over 134 million scam ad posts in 2025.