"According to internal documents revealed by Reuters, users of Facebook, Instagram, and WhatsApp see 15 billion ads a day promoting scams, from fake Trump stimulus checks to deepfakes of Elon Musk hawking cryptocurrency. The company reportedly knows this; Reuters said that its own trust and safety team estimated that one-third of scams in the US involved a Meta platform. So why hasn't Meta done more? Perhaps because these ads are apparently highly profitable, to the tune of $7 billion US or more a year."
"Scams are not a small problem. Americans alone reported $16 billion in losses to the FBI last year, and this number is likely lower than the actual amount because scams are notoriously underreported. (Victims of scams are often deeply embarrassed for falling for them.) Globally, the numbers are enormous: the Global Anti-Scam Alliance estimates that scammers stole more than $1 trillion from people worldwide in 2024."
"And the people who lose money from scams can scarcely afford it. Often, victims of scams are elderly people on fixed incomes, young people looking for jobs, immigrants, and others going through transitions or difficult times. These are people for whom the promise of an extra thousand dollars in government benefits or a stable job is highly motivating. Losing even a few hundred dollars to a scammer can be devastating."
"But not for Meta. Reuters reports that internal company documents show Meta earns $16 billion - 10 percent of its overall annual revenue - each year from scam ads and ads for banned goods. $7 billion of this comes from ads that present obvious hallmarks of scams, such as falsely claiming to represent public figures or brands. Even heavy fines would pale against these enormous profits."
Internal documents indicate users of Facebook, Instagram, and WhatsApp encounter billions of scam ads daily, and company trust-and-safety estimates link a substantial share of U.S. scams to Meta platforms. Scam advertising produces massive revenue, with roughly $16 billion yearly tied to scam and banned-goods ads and about $7 billion from ads with clear scam hallmarks. Reported consumer losses are large — Americans reported $16 billion to the FBI and global losses exceeded $1 trillion in 2024 — and victims often include elderly, job-seekers, immigrants, and other financially vulnerable people. Fines would be small relative to these profits.
Read at The Verge
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