Meta Platforms Inc. is facing scrutiny over its handling of scam advertisements on its social media platforms, including Facebook, Instagram, and WhatsApp. Internal documents reveal that the company projected it would generate approximately 10% of its total annual revenue, or about $16 billion, from advertising related to scams and banned products. Users have been exposed to fraudulent e-commerce schemes, illegal online casinos, and the sale of prohibited medical items.

For at least three years, Meta reportedly struggled to identify and eliminate a significant number of scam ads. A December 2024 document indicated that users were shown an estimated 15 billion "higher risk" scam advertisements daily. The company earns around $7 billion annually from these types of ads.

Meta spokesperson Andy Stone stated that the documents provide a "selective view that distorts Meta's approach to fraud and scams." He described the internal estimate of 10.1% of 2024 revenue from scams as "rough and overly inclusive," without offering a revised figure. Stone emphasized that the assessment was intended to support planned investments in integrity and fraud prevention.

Despite the challenges, Meta claims to be actively combating scams. Stone noted that the company has reduced user reports of scam ads globally by 58% over the past 18 months and removed over 134 million pieces of scam content in 2025 alone. Meta has also implemented new requirements for financial advertisers on its platforms, mandating transparency about who is funding the ads and who benefits from them.

However, internal documents suggest that Meta's automated systems only ban advertisers if there is a 95% certainty of fraud. If the certainty is lower, the company imposes higher ad rates as a deterrent. Stone reiterated, "We aggressively fight fraud and scams because people on our platforms don't want this content, legitimate advertisers don't want it, and we don't want it either."

Meta has set ambitious goals to further reduce scam ads, aiming for a 50% decrease in certain markets by 2025. Yet, some documents indicate that the company's platforms may be integral to the global fraud economy, with a May 2025 presentation estimating that they were involved in a third of all successful scams in the U.S.

In response to increasing pressure, executives presented a plan to CEO Mark Zuckerberg in October 2024, advocating for a moderate approach to scam enforcement. This strategy focused on countries facing imminent regulatory action rather than proactive measures. Stone disputed claims that Meta would only act under pressure, asserting that it is not the company's policy.

The issue of scam ads has affected many users. One case involved a Royal Canadian Air Force recruiter whose Facebook account was hacked, leading to a fraudulent crypto investment scheme that defrauded her friends. Despite multiple reports to Meta, it took weeks for the company to respond, during which time several individuals lost significant amounts of money.

Documents also reveal that even when advertisers are flagged for promoting financial fraud, the consequences can be lenient. Smaller advertisers may need to be flagged eight times before being banned, while larger accounts could accumulate over 500 violations without facing immediate action.

In light of these findings, Meta has received criticism, including a Shonky Award for its inadequate response to scams. Reports have surfaced of fake accounts impersonating celebrities and brands, with some scam accounts remaining active for months despite being flagged. A 2022 document noted a "lack of investment" in automated scam detection, categorizing scam ads as a "low-severity" issue. As the company continues to navigate these challenges, the effectiveness of its measures against online fraud remains under scrutiny.