Internal Meta Files Reveal Billions Earned from Scam and Banned-Product Ads

Internal files show Meta earned billions from scam and prohibited ads

Newly revealed internal documents reviewed by Reuters indicate that Meta ran advertising for fraudulent e-commerce and investment schemes, illegal online casinos and banned medical products across Facebook, Instagram and other services — generating several billion dollars annually.

According to a late-2024 internal projection, Meta estimated that around 10% of its 2024 revenue — roughly $16 billion (reported more precisely as 10.1% in some documents) — could be traced to prohibited or fraudulent advertising. One December 2024 memo estimated that Meta’s systems exposed users to about 15 billion “higher risk” scam ads per day, a category that the company said generated roughly $7 billion in annualized revenue.

The documents, created between 2021 and 2025 across Meta’s finance, lobbying, engineering and safety teams, show the company struggled for at least three years to detect and halt a steady stream of scam and illegal-product ads reaching its billions of users. Much of the problematic traffic came from advertisers whose behavior triggered internal warning systems.

Meta’s automated enforcement reportedly only banned advertisers when the system was at least 95% certain they were committing fraud. For cases with lower certainty, the company often imposed higher ad rates as a penalty — a pricing disincentive intended to deter likely scammers rather than remove them.

The files also note that users who click scam ads are likely to see more of them because ad-personalization systems aim to serve content aligned with perceived interests. Together, the records reflect Meta’s efforts to quantify platform abuse and its apparent caution about crackdowns that could affect revenue.

Experts criticized the findings as highlighting weak regulatory oversight of advertising revenue sources. Sandeep Abraham, a fraud examiner and former Meta safety investigator, said regulators should not allow tech platforms to profit from suspected fraud in ways regulators would not permit banks.

Meta responded that the documents present a selective view that distorts the company’s approach to fraud and scams. The company said the 10.1% figure was a rough, overly inclusive estimate produced to justify planned integrity investments and that it has since taken action to combat fraud.

Meta added that over the past 18 months it reduced global user reports of scam ads by 58% and, as of 2025, had removed more than 134 million pieces of scam ad content. The company declined to provide an updated aggregate revenue figure.

Context: The reporting is based on leaked or disclosed internal documents and reflects Meta’s internal assessments; the company disputes the characterization and highlights ongoing enforcement and removal efforts.