Meta Platforms, the parent company of Facebook and Instagram, is facing sharp criticism after internal documents reportedly showed that up to 10% of its global ad revenue comes from fraudulent or deceptive advertising - a revelation that has reignited scrutiny over the social media giant’s handling of online scams.
The report, published by TechCrunch citing internal estimates and anonymous sources, suggests that Meta may have profited billions of dollars from ads that promote nonexistent products, investment schemes, and fake celebrity endorsements.
If accurate, the finding would mean Meta earned roughly $13 billion in scam-related advertising revenue in 2024 alone - based on its total reported earnings of around $134 billion for that year.
“These are not isolated incidents,” said one former Meta integrity team member. “It’s systemic — scams are baked into the revenue stream.”
A Hidden Crisis in Meta’s Ad Ecosystem
According to the report, Meta’s internal safety teams have long warned executives that deceptive ads are among the platform’s fastest-growing sources of income, especially in emerging markets across Asia, Africa, and Latin America, where digital literacy remains low and regulation is sparse.
The scams often use familiar tactics: impersonating brands, fabricating investment opportunities, or hijacking verified pages to promote AI-generated fake endorsements featuring public figures.
In one instance, fraudulent ads used AI deepfakes of Elon Musk and Mark Zuckerberg promoting “instant wealth” crypto apps - which later drained victims’ bank accounts.
Despite repeated internal flags, enforcement appears inconsistent. TechCrunch’s sources say Meta “struggles to balance ad safety with revenue growth,” and that automated ad approval systems frequently miss violations.
