Meta’s apps are showing users a staggering number of scam ads every day. Internal documents reveal that Facebook, Instagram, and WhatsApp combined display around 15 billion high-risk scam advertisements daily. These include fake products, illegal gambling, and banned goods. On top of that, users encounter an additional 22 billion “organic” scams, like bogus marketplace listings and false job offers. The scale is enormous, and the people behind it are exploiting the trust users place in brands and public figures.
Revenue Over Regulation
According to internal projections, scam ads could account for roughly 10 percent of Meta’s yearly revenue, amounting to around $16 billion. Yet the company has long taken a cautious approach to enforcement. Advertisers suspected of running scams are only removed if the system is 95 percent sure of fraud. Otherwise, they may continue running ads, sometimes racking up hundreds of strikes without suspension. For larger advertisers, suspected of misconduct, Meta even charges higher ad rates. The system is designed to deter some activity while still maintaining revenue.
Meta’s ad-personalization tools, meant to serve content based on user interests, end up pushing more scam ads toward users who interact with them. Those clicks feed into more exposure, creating a cycle that benefits the platform financially. In late 2024, the company anticipated earning roughly $7 billion from high-risk ads alone, part of that 10 percent estimate.
Balancing Act
Meta’s internal documents show a delicate balance between enforcement and revenue. The company has aimed to gradually cut the share of revenue from scams and banned goods, targeting a drop from 10.1 percent in 2024 to 7.3 percent by the end of 2025. Internal memos stress moderation, ensuring enforcement does not hurt overall projections or investments, especially in artificial intelligence, where the company is spending billions.
The documents also make clear that Meta prioritizes removing fraudulent ads when regulators are watching closely. Other areas receive lighter enforcement, allowing some advertisers to continue until stricter oversight forces action. Even as new systems reduce user complaints, the documents suggest that enforcement remains calibrated to protect revenue while appearing to address risk.
Real-World Consequences
The impact of scam ads is tangible. Meta’s platforms were reportedly involved in a third of all successful U.S. scams in 2025. Users lose money, trust, and sometimes access to accounts. In one instance, a hacked account used to promote cryptocurrency scams defrauded multiple people. Internal reviews show that historically, the majority of user reports of scams went unaddressed or were incorrectly dismissed. Fraudsters take advantage of gaps in the enforcement system, exploiting users with fake financial offers and phony promotions from public figures.
Steps Toward Change
Meta has expanded teams to monitor scam activity and improved automated detection. In 2025, the company removed over 134 million scam ads, cutting global user complaints by about 58 percent. Penalty-based bidding systems were introduced, charging likely fraudsters more to participate in ad auctions. Early results show a decline in scam reports and a modest drop in ad revenue. While these measures are a step forward, documents indicate the company remains cautious, mindful of revenue losses.
Regulators Loom Large
Authorities in the U.S., U.K., and other regions are scrutinizing Meta’s handling of fraudulent advertising. Fines could reach up to $1 billion, but internal figures show revenue from high-risk ads exceeds anticipated penalties. The discrepancy highlights the tension between profit and user protection. Meta continues to weigh enforcement costs against business priorities, even as its platforms play a major role in the global scam ecosystem.
Meta faces a difficult choice. Cut scam ad revenue and potentially hinder its ambitious AI projects, or let high-risk ads continue, maintaining billions in income but leaving users exposed. The internal records suggest the company is trying to thread that needle, making cautious moves that preserve financial gains while slowly tightening controls. The next few years will test whether Meta can reduce the flood of scams while keeping investors satisfied.
Notes: This post was edited/created using GenAI tools. Image: Julio Lopez / Unsplash
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