"A new investigative report from Reuters, citing Meta's own internal documents, found that the company's platforms show, on average, an estimated 15 billion "higher risk" scam advertisements to its users every day. Reuters reported that a 2024 document showed that Meta makes about "$7 billion in annualized revenue" from those scam ads each year. The internal documents revealed by Reuters show that Meta expected as much as 10 percent of its 2024 ad revenue "would come from ads for scams and banned goods.""
"The Reuters report also revealed, according to the internal documents, that Meta "only bans advertisers if its automated systems predict the marketers are at least 95% certain to be committing fraud" - while other likely scammers simply get charged a higher rate as punishment. So, yes, that might make scammers pause - but it would also make Meta a lot of money. Billions of dollars a year, in fact."
Meta's platforms display an estimated 15 billion "higher risk" scam advertisements every day, producing about $7 billion in annualized revenue from those ads. Internal documents indicate up to 10 percent of 2024 ad revenue may come from ads for scams and banned goods. Scam ads exposed billions of users to fraudulent e-commerce and investment schemes, illegal online casinos, and banned medical products. Automated enforcement reportedly bans advertisers only when systems predict at least 95% certainty of fraud, while other suspected scammers are charged higher rates instead of being blocked. Routine scammy ads include fake apps and counterfeit storefronts, and enforcement failures allowed the problem to persist for years.
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