Meta Profits From Scam Ads Despite Internal Policies

Internal documents reviewed by Reuters reveal that Meta platforms Facebook and Instagram continue to generate substantial revenue from advertisements that violate the company's own policies against get-rich-quick schemes. Despite internal projections estimating that roughly 10% of annual revenue—approximately $16 billion—comes from scam ads and promotions for banned goods, Meta's ad approval systems continue to allow such content to reach millions of users worldwide.

The investigation found that users who engage with scam advertisements are subsequently shown more similar content through Meta's personalization algorithms, creating a feedback loop that exposes vulnerable individuals to repeated fraudulent offers. In Britain alone, regulators identified Meta platforms as the source of 54% of all payment-related scam losses in 2023—more than double all other social media platforms combined.

Background and Context

Meta's advertising policies explicitly prohibit "get-rich-quick" schemes and misleading financial promotions. Yet in November 2024, a Reuters investigation demonstrated how easily such ads bypass these restrictions. A reporter using their real name submitted advertisements promising a 10% weekly return on investments—equivalent to more than 14,000% annually—clearly violating Meta's terms of service. The ads passed automated review within minutes and reached over 20,000 users across the United States, Europe, India, and Brazil before being removed.

The test advertisements featured imagery of cash and cryptocurrency raining down on a computer user and explicitly asked viewers if they wanted similar financial results. According to data shared by Meta after the investigation, the ads generated more than 100 clicks within four days and attracted dozens of inquiries from potential victims, including a man in North Carolina who reported seeing the ad while searching for overnight employment opportunities.

Key Figures and Entities

To place the test advertisements, Reuters contacted agencies listed in Meta's official Partner Directory, which the company describes as "trusted experts and badged partners." One such agency, Vietnam-based Bluefocus, marketed tutorials including "How to Advertise Illegal Products on Facebook" while claiming a close working relationship with Meta. Though Bluefocus later denied running prohibited ads, a WhatsApp message from an official account offered $500 to help create fake US-based advertising accounts.

Multiple resellers agreed to establish advertising accounts for the Reuters investigation, charging signup fees of $30 or less plus higher commissions. These services operated within hours and requested payment in cryptocurrency. None of the resellers refused service after being informed that the advertisements would violate Meta's policies. Each reseller account traced back to large Chinese agencies positioned centrally within Meta's ad sales infrastructure in China, despite Facebook and Instagram being blocked for ordinary users in mainland China.

Legal and Financial Mechanisms

Internal Meta documents reveal that the company's approach to suspected fraudulent advertisers relies on a confidence threshold system. Rather than immediately blocking advertisers suspected of scams, Meta continues to serve their advertisements unless automated systems achieve 95% certainty of fraud. When certainty levels fall below this threshold, Meta imposes higher advertising prices as a penalty rather than removing the content entirely.

Financial projections from December 2024 estimate that users encounter approximately 15 billion high-risk scam advertisements daily across Facebook, Instagram, and WhatsApp, generating around $7 billion annually according to Meta's internal calculations. Another document from the same period shows that Meta anticipates fines up to $1 billion related to scam advertising, yet internal strategy papers project that revenue from higher-risk scam ads over six months—approximately $3.5 billion—will exceed potential settlement costs.

International Implications and Policy Response

The scale of scam advertising on Meta platforms has drawn increasing regulatory scrutiny worldwide. According to the Reuters investigation, the U.S. Securities and Exchange Commission is examining Meta's role in facilitating financial scam advertisements, while regulators in both the United States and United Kingdom have intensified their inquiries into the company's moderation practices.

Meta's internal strategy documents indicate a gradual reduction in scam-related revenue is planned, with targets to decrease such income from approximately 10.1% of total revenue in 2024 to 7.3% by the end of 2025, with further reductions in subsequent years. However, the company's approach to defining scams remains narrow—when Singapore police provided 146 examples of fraud, Meta determined that only 23% violated its written policies, despite other cases involving fake ticket sales and extreme discount offers.

In response to the Reuters investigation, Meta spokesperson Andy Stone stated that the internal revenue estimates provide a "distorted picture" and that the 10% figure was rough and included many legitimate advertisements. Stone noted that Meta removed more than 134 million scam ads in 2025 and that user reports of such advertisements decreased by 58% over 18 months, emphasizing that the company fights fraud because "users and advertisers do not want it."

Sources

This report draws on investigative reporting by Reuters, internal Meta documents reviewed by journalists, and public statements from company representatives. It also incorporates findings from regulatory bodies in Britain and Singapore regarding scam advertising patterns on social media platforms.