Meta has announced that it has taken down more than 134 million fraudulent advertisements across its platforms in the past 18 months, following growing concerns about the scale of scam activity targeting users of Facebook and Instagram.
The company’s statement comes shortly after a Reuters investigation revealed internal documents suggesting that Meta may have generated as much as $16 billion, about 10% of its annual revenue, from ads linked to fraudulent or misleading activity.
According to the report, the scams ranged from fake investment opportunities to illegal gambling and unapproved medical products. Many of the ads were designed to trick users into sharing personal data or making payments for nonexistent goods and services, putting consumers at serious financial risk.
Systemic Weaknesses in Meta’s Ad Oversight
While Meta claims to have strengthened its response mechanisms, the documents cited by Reuters highlight significant gaps in the company’s ability to protect users from digital fraud. For over three years, Meta allegedly struggled to contain the surge of deceptive campaigns, particularly in regions where online scams thrive and digital advertising remains lightly regulated.
Internally, Meta reportedly relies on an algorithm that assesses the likelihood of a campaign being fraudulent. However, the system only disables an advertiser’s account if it is 95% certain that the advertiser is engaged in fraud. In most other cases, Meta opts to increase the ad charges imposed on suspected fraudulent accounts rather than banning them outright.
The strategy, critics say, effectively allows potentially harmful advertisers to continue operating while generating revenue for Meta. Analysts have described this approach as a conflict of interest between ensuring user safety and maximizing profit margins.
Meta did not respond to requests for comment from TechCrunch before the publication, but spokesperson Andy Stone told Reuters that the leaked materials “present a selective view that distorts Meta’s approach to fraud and scams.”
Also read: Meta to Deactivate Seven Million WhatsApp Accounts Tied to Scammers
Meta’s Push to Rebuild Trust
Stone emphasized that Meta has made “significant progress” in cleaning up its advertising ecosystem. The company says user reports of scam ads have declined by 58% since early 2024, a figure it attributes to improved detection systems and faster response times.
Meta’s removal of 134 million fraudulent ads, according to the company, reflects a broader effort to restore user trust amid growing regulatory scrutiny. Lawmakers in the United States and Europe have repeatedly urged the company to do more to safeguard consumers against financial deception on its platforms, especially in light of ongoing investigations into online fraud networks operating through social media ads.
Despite the recent improvements, experts say the company’s challenge is far from over. As scammers deploy increasingly sophisticated methods, including AI-generated content and deepfake endorsements , the fight against fraudulent advertising remains a cat-and-mouse game.
Meta’s financial ties to digital advertising, which accounts for nearly all of its revenue, mean the company must constantly balance profit motives with user protection. The revelation that billions in ad revenue could be linked to fraudulent campaigns adds new pressure on Meta to show that its cleanup efforts are more than just damage control.
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