Meta Earned Billions from Chinese Scam Ads Despite Internal Warnings
Internal documents reveal that Meta knowingly accepted more than $3 billion in revenue from Chinese advertisers promoting scams, illegal gambling and other banned content in 2024. The figure represents roughly 19% of the company's $18.4 billion in advertising sales from China that year, according to previously unreported internal materials reviewed by journalists.
The documents expose how Meta identified China as its top "Scam Exporting Nation," responsible for approximately a quarter of all fraudulent advertising on its platforms globally. Despite launching a specialized anti-fraud team that temporarily reduced illicit ads by half, executives ultimately disbanded the unit after CEO Mark Zuckerberg weighed in, allowing problematic advertisements to return to previous levels within months.
Background and Context
China's government blocks its citizens from accessing Facebook, Instagram and WhatsApp, but permits Chinese companies to advertise to foreign consumers on Meta's platforms. This arrangement has proved enormously profitable, with Chinese advertising revenue more than doubling between 2022 and 2024 to reach $18.4 billion—accounting for 11% of Meta's global revenue.
The scale of fraudulent advertising from China became increasingly apparent within Meta as the business expanded. According to internal presentations, Meta determined that Chinese advertisers were systematically violating its policies by promoting banned products and services to international users. Victims ranged from Taiwanese shoppers purchasing bogus health supplements to American and Canadian investors swindled out of their savings through sophisticated financial scams.
Key Figures and Entities
Meta operates in China through 11 major advertising agency partners, known as "top tier resellers," which both sell ads directly and recruit smaller agencies to purchase Facebook and Instagram advertising space. These intermediaries create an opaque system that makes it difficult for Meta to monitor who is ultimately placing advertisements on its platforms, according to documents reviewed by journalists.
One problematic advertiser identified as Beijing Tengze Technology Co Ltd appeared on Meta's list of top 200 global advertisers alongside American Express, BMW and Chanel. Despite internal documents showing that more than half of Beijing Tengze's ads violated Meta's policies against deceptive practices, the company initially continued doing business with Meta by paying higher "penalty" rates rather than being removed entirely.
Meta spokesperson Andy Stone told journalists that the special anti-fraud team focusing on Chinese advertising was always intended as a temporary measure. He stated that Zuckerberg's directive was to "redouble efforts to reduce" harmful content globally, including in China, and denied that the CEO ordered the team's disbanding.
Legal and Financial Mechanisms
Meta's advertising system in China operates through "agency accounts" that bypass the standard business profile verification process required elsewhere. These accounts receive special protections under a system known as "whitelisting" or "mistake prevention," which means flagged ads aren't immediately removed but undergo secondary human review—allowing fraudulent content to remain active long enough to "accomplish their objectives by gaining massive impressions," according to one internal document.
The system creates vulnerabilities that advertisers exploit. Some Chinese partners openly advertise their ability to shield clients from Meta enforcement, with one official partner boasting "80% lower chance of suspension than other regular agents." Meta also permits its top Chinese agencies to share accounts with smaller resellers, further obscuring the identity of actual advertisers.
A consultant report commissioned by Meta warned that the company's own behavior and policies were fostering systemic corruption in the Chinese advertising market. The report noted that because harmful advertising doesn't target Chinese citizens, the government generally turns a blind eye, creating an environment where fraudulent advertisers face "little or no risk."
International Implications and Policy Response
Meta's tolerance for problematic Chinese advertising occurs as the company faces increased scrutiny for failing to curb a surge in fraudulent content across its platforms. Last month, two U.S. senators called on the Securities and Exchange Commission and Federal Trade Commission to investigate Meta's advertising practices following reports that the company earns $7 billion annually from "high risk" scam ads.
The implications extend beyond financial losses. In March 2025, federal prosecutors in Illinois announced that the FBI had seized $214 million in proceeds from a Chinese stock scam that used Facebook and Instagram ads to lure victims into WhatsApp groups run by "individuals in China posing as US-based investment advisors." The scheme steered victims into purchasing stock at vastly inflated prices before authorities intervened.
Internal documents show that Meta has considered China's influence on global fraud significant enough that company analysts track how Chinese national holidays affect scam rates worldwide. During China's "Golden Week" holiday in October, when hundreds of millions travel, the rate of scams on Meta's platforms declines globally, according to one document.
Sources
This report draws on internal Meta documents from the company's finance, lobbying, engineering and safety divisions generated between 2022 and 2025, public financial statements, court filings from federal prosecutors in Illinois, and independent reporting on Meta's business practices. The investigation also incorporates information from the company's public statements and responses to inquiries about its advertising operations in China.
