Congratulations! You have won an iPhone. the king Felipe VI announcing investments. Work at Primor and get paid up to 160 euros per hour. These are just three examples of fraudulent ads that have appeared on Facebook and Instagram, but there are many more. So many, that Meta is making money with them.
What has happened? An investigation of Reuters has revealed that Meta estimated that 10% of all revenue volume would come from fraudulent ads, which would total $16 billion. In an internal document from December 2024, Meta estimated that its platform serves about 15 billion “high-risk” scam ads every day. By “high risk” they mean those that are clearly frauds, like those we mentioned in the introduction, so the real number would be even higher.
It seems like fraud, because we charge you more. Meta has automated systems to detect these types of ads, the problem is that the policy to block them is quite lax. The documents reveal that ads are only blocked if the system identifies it as a scam with 95% certainty. If the percentage is lower, what they do is raise the advertiser’s fee to supposedly discourage them. That is, if they continue to advertise, Meta makes even more money from frauds.
The favorite site of scammers. There is more. In another document, Meta admits that “It is easier to advertise scams on Meta platforms than on Google.” The information comes from channels in which scammers discuss their methods, although they do not specify the reasons for their choice. They also estimate that a third of all successful scams in the United States occur through their platforms.
Regulation. Meta is in the crosshairs of regulators around the world. The European Commission initiated action against the company for the use of data to serve advertising to users. In United Kingdom took them to trial for the same reason and more recently the United States Securities and Exchange Commission is investigating them for the financial frauds advertised on their platform. In documents published by Reuters, Meta shows its intention to reduce illegal ads, but is concerned that a sudden reduction would negatively affect its revenue.
Don’t touch my publi. Meta is in a delicate moment for the huge increase in spending on AI which, despite having achieved positive results in the last quarter, has caused its shares to fall 8%. Considering that targeted advertising is Meta’s main revenue stream, a reduction on this front could shake the entire house of cards.
Meta responds. Speaking to Reuters, a Meta spokesperson criticized the news, saying the documents “present a selective view that distorts Meta’s approach to fraud and scams.” He says the estimate of 10% profit from scam ads was excessive and the actual figure was much lower, although he declined to give an updated figure. According to Meta, in the last year and a half, fraudulent ad notices have been reduced by 58% and in 2025 they will have eliminated more than 134 million scams from their platform.
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