Meta reportedly earns $16 billion from scam ads

Meta, the parent company of Facebook and Instagram, reportedly estimated that around 10% of its annual revenue — nearly $16 billion last year — came from scam advertisements across its platforms, according to documents accessed by Reuters.

The internal files suggest that for over three years, Meta failed to adequately protect users from ads promoting illegal gambling, investment fraud, and banned medical products. Many of these ads posed as legitimate offers while attempting to extract money or personal information from unsuspecting users.

The report also reveals how Meta’s internal detection systems operate. The company uses automated models to estimate the probability that a campaign is fraudulent. However, Meta only takes decisive action — such as deactivating an advertiser’s account — if there is at least a 95% certainty of fraud. In cases where the likelihood is lower, Meta instead charges higher rates to advertisers it suspects of wrongdoing, effectively deterring some while inadvertently profiting from others who continue to purchase ads despite the premium.

When TechCrunch reached out to Meta for comment, the company did not respond in time for publication. However, according to Reuters, Meta spokesperson Andy Stone said the internal documents “present a selective view that distorts Meta’s approach to fraud and scams.”

Stone further stated that over the past 18 months, Meta had reduced user reports of scam-related ads by 58% and removed more than 134 million fraudulent advertisements across its family of apps.

The revelations, if accurate, raise questions about the integrity of Meta’s ad ecosystem — one that contributes the vast majority of its global revenue. While the company insists that it continues to invest heavily in security and content moderation, the leaked figures indicate that scam-related ad activity remains deeply intertwined with its business model.