Meta faces fresh scrutiny after scam ads promising 14,000% returns run on Facebook and Instagram

Meta

Meta’s advertising platforms hosted fraudulent investment ads promising extraordinary returns, in some cases more than 14,000 percent annualised, despite clear internal rules banning such content, a Reuters investigation has found. The episode has raised fresh questions about how seriously the company enforces its own policies and whether its systems prioritise revenue over user safety.

In November, a Reuters reporter tested Meta’s ad approval and enforcement system by attempting to run cryptocurrency-focused advertisements that offered a 10 percent weekly return, which translates to roughly 14,000 percent annually, a claim that financial regulators would regard as a hallmark of scams. To the reporter’s surprise, these ads were approved and shown on Facebook and Instagram feeds to more than 20,000 users across the United States, Europe, India and Brazil.

The investigator did not actually take users’ money, nor did he represent a real investment product. Yet the ads sailed through Meta’s controls with the assistance of agencies listed in the company’s Partner Directory, a publicly accessible list of firms categorised as “trusted experts” or “Badged Partners” that Meta portrays as vetted and reliable. Some of those agencies offered access to privileged ad accounts that appeared less likely to trigger enforcement actions.

Meta’s own artificial intelligence tools even suggested enhancements to the fraudulent ad copy and creative to improve engagement, underscoring how automated systems can inadvertently help promote misleading material rather than block it.

The controversy has unfolded against a backdrop of broader concerns about scam advertising on Meta platforms. Internal company documents previously reported by Reuters reveal that Meta projected that roughly 10 percent of its 2024 advertising revenue or about $16 billion could come from scam ads and other banned content if current patterns continued. These ads include fraudulent investment schemes, fake shopping deals and prohibited medical products. Critics say the magnitude of scam advertising suggests enforcement is inconsistent and that revenue considerations sometimes outweigh user protection.

In response to the latest investigation, Meta removed its Partner Directory and said it is reviewing the programme. A Meta spokesperson reiterated that company policies prohibit scam and get-rich-quick ads and that the recent partner listings no longer appear on the site. However, the episode has already drawn scrutiny from regulators and policymakers in multiple countries, some of whom have called for formal investigations into whether Meta’s platforms are doing enough to protect users from fraud.