Social media platforms earn £3.8bn annually from scam adverts targeting European users

Social media platforms are generating approximately £3.8 billion annually in revenue from fraudulent advertisements targeting European users, creating a potential conflict of interest between profit and user protection, according to new research commissioned by fintech platform Revolut. The study, conducted by Juniper Research, indicates that scam adverts accounted for roughly 10 percent of all social media advertising revenue across Europe last year, raising serious questions about the platforms' incentives to police their advertising ecosystems effectively.

Background and Context

The scale of fraudulent advertising on social media has reached alarming proportions, with Juniper Research's analysis revealing that the average European user encountered 190 scam advertisements monthly throughout 2025, totaling approximately one trillion views across the continent. These scams frequently employ sophisticated techniques including deepfake technology to impersonate legitimate organizations and public figures, promoting fake products, platforms, and investment opportunities. The research follows previous investigations by This is Money into deepfake scam adverts targeting social media users, highlighting the growing sophistication of fraudulent advertising methods.

Key Figures and Entities

The Juniper Research study examined six major social media platforms: Facebook, Instagram, TikTok, Snapchat, X (formerly Twitter), and LinkedIn. In the UK specifically, these platforms generated an estimated £430.4 million from scam advertisements in 2025, representing 9.3 percent of the total European scam ad revenue. The financial impact on users has been particularly severe in the UK, where victims lost an average of £1,258 per scam—second only to Ireland in terms of individual financial harm. According to Advertising Standards Authority research, 64 percent of people express concern about scam advertising, yet the regulator received only 2,589 reports throughout 2025, suggesting significant underreporting.

Legal and Financial Mechanisms

The fundamental conflict arises from the platforms' revenue models, which earn money from every advertisement displayed regardless of legitimacy. Revolut's analysis suggests this financial benefit effectively incentivizes platforms to maintain a permissive environment for scam advertisers. While the UK's Online Safety Act 2023 legally requires platforms to remove scam advertisements, implementation has been significantly delayed. The regulator, Ofcom, has postponed the rollout of duties specifically designed to combat fraudulent advertising until mid-2026, with a consultation on these duties not scheduled until summer 2026 and a full code of practice not expected until 2027.

International Implications and Policy Response

The problem extends beyond the UK, with France recording 107 billion scam advert views and the UK 95 billion in 2025. Current trends indicate the situation may worsen, with Juniper Research forecasting that scam advert impressions could reach 1.4 trillion annually in Europe by 2030, potentially generating £8.9 billion in platform revenue. In response, the U.S. Senate recently unveiled legislation requiring platforms to take 'reasonable steps' to prevent fraudulent advertising. Speaking at Revolut's Fincrime summit, UK fraud minister Lord Hanson emphasized the need for "basic minimum standards of performance by tech companies" and called for international coordination to "put some heat into that system and make sure we put some international challenges in to bring tech companies into line to reduce that level of fraud."

Sources

This report draws on research commissioned by Revolut and conducted by Juniper Research, UK parliamentary statements, Advertising Standards Authority surveys, This is Money investigations, and public information from Ofcom regarding the implementation of the Online Safety Act. The analysis covers data from social media platforms including Facebook, Instagram, TikTok, Snapchat, X, and LinkedIn throughout 2025.