Monday, April 27, 2026

Meta accused of making billions from scam ads

Leaked internal documents have alleged that Meta Platforms generated up to $16 billion in revenue from scam-related advertising in 2024, raising serious questions about the company’s handling of fraud across its platforms.

The documents claim that approximately 10.1 percent of Meta’s total revenue came from ads linked to scams, including illegal gambling, fake e-commerce, and unapproved medical products, with users reportedly exposed to billions of high-risk ads each day across Facebook and Instagram.

According to the leaked material, internal projections suggested Meta earned around $3.5 billion every six months from high-risk scam ads in the United States alone. One document allegedly stated that this figure could exceed the cost of potential regulatory penalties, implying the financial incentive to continue hosting such ads outweighed the risks. The reports also claim Meta imposed internal limits on fraud enforcement, restricting teams from removing more than $135 million worth of scam-related ad revenue per quarter—less than one percent of the estimated annual total.




The documents further allege that Meta-linked platforms were responsible for a significant share of global scam activity, including large-scale investment fraud schemes, deepfake celebrity endorsements, and cryptocurrency scams targeting vulnerable users. Messaging service WhatsApp was also cited as a channel used by international criminal networks contributing to global scam traffic.

Meta has rejected the claims, with spokesperson Andy Stone describing the leaked information as “a selective view that distorts Meta’s approach to fraud and scams,” and stating the revenue estimates were “rough and overly inclusive.” However, the company is currently facing multiple legal challenges in the United States, Australia, and the United Kingdom related to scam advertising and user losses.

The controversy has intensified following Meta’s recent announcement that it will cut approximately 8,000 jobs—around 10 percent of its workforce—while also cancelling thousands of open roles. The company said the move is aimed at improving efficiency and funding ongoing investments, particularly in artificial intelligence. Critics argue the layoffs contrast sharply with the alleged scale of revenue generated from scam ads, suggesting a prioritisation of profitability and AI development over user protection and internal fraud prevention efforts.

The leaked documents also indicate Meta had planned to gradually reduce scam-related revenue to 7.3 percent by 2025 and 5.8 percent by 2027, rather than eliminating it entirely, further fuelling criticism over the company’s approach to tackling fraud on its platforms.

Support DTNZ

DTNZ is committed to bringing Kiwis independent, not-for-profit news. We're up against the vast resources of the legacy mainstream media. Help us in the battle against them by donating today.

No login required to comment. Name, email and web site fields are optional. Please keep comments respectful, civil and constructive. Moderation times can vary from a few minutes to a few hours. Comments may also be scanned periodically by Artificial Intelligence to eliminate trolls and spam.

1 COMMENT

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Wellington
overcast clouds
10.8 ° C
10.9 °
10.8 °
97 %
3.1kmh
99 %
Sun
13 °
Mon
16 °
Tue
15 °
Wed
16 °
Thu
14 °




Sponsored



Trending

Sport

Daily Life

Opinion

More News