Meta is making billions from fraudulent advertising

Tech giant Meta Platforms, Inc. (Facebook, Instagram, Threads) has come under fire after leaked internal documents revealed that in 2024 around 10 % of its annual profit, roughly $16 billion, came from ads linked to fraudulent schemes and prohibited goods.

Meta’s ad system is designed so that even suspicious advertisers can continue operating. The company’s algorithms block ads only when they are 95 % certain a campaign is fraudulent. If suspicion is lower, the advertiser remains active but pays higher rates under the penalty bid model — allowing Meta to profit even from risky campaigns.

Analysts estimate that users see up to 15 billion potentially fraudulent ads every day across Meta’s platforms. For at least three years, the company has failed to stop the flow of fake promotions for investment scams, illegal online casinos, counterfeit brands, and unsafe medical products.

Spokesperson Andy Stone stated that Meta actively combats such ads, reporting a 58 % drop in user complaints over the past 18 months and removing more than 134 million scam-related items in 2025. However, internal company data indicates that around one-third of all online scams in the U.S. involve Meta’s platforms.

Even potential fines of up to $1 billion would barely affect the company’s profits. In just the first half of 2025, revenue from high-risk advertising exceeded $3.5 billion. Meta’s model demonstrates how financial incentives can outweigh ethical responsibility in the digital economy.