Meta is once again under fire following a Reuters investigation that alleges the company earned billions of dollars in scam advertising on Facebook and Instagram, prioritizing revenue over user safety.
The report adds to a growing list of controversies surrounding the social media giant, which has previously been criticized for mishandling user data, failing to curb fake news and hate speech, and overlooking the mental health impact of its platforms on young users.
According to Reuters, Meta earned more than $3 billion last year from fraudulent ads originating in China, including promotions for illegal gambling, pornography, and other prohibited content. The revenue reportedly made nearly 19 percent of Meta’s total ad revenue from China, which stood at $18 billion during the same period. Earlier reporting by Reuters also found that around 10 percent of Meta’s global revenue has come from fraudulent advertising.
An internal Meta investigation reportedly revealed that nearly 25 percent of all ads displayed across its platforms originated in China, with many of the scams targeting users in Taiwan, the United States, and Canada. Investigators warned that the growing volume of scam ads posed serious risks, particularly for children and young adults, and urged Meta to make a significant investment to limit the harm.
Meta’s Response
In response, Meta set up a dedicated task force to combat ad fraud across Facebook, Instagram, and WhatsApp. The group managed to cut scam ads by nearly 50 percent by the end of 2024. However, Reuters reports that the task force was later dissolved following an intervention by Mark Zuckerberg, after which fraudulent advertising began to rise again.
The investigation suggests that Meta was aware of the scale of the problem but hesitated to take stronger action because of the potential impact on revenue.
Rob Leathern, a former Senior Director of Product Management at Facebook until 2020, told Reuters that the extent of predatory advertising amounts to a serious failure of consumer protections at the company.
“The levels that you’re talking about are not defensible,” he said of the percentage of abusive ads. “I don’t know how anyone could think this is okay.”
In response, Meta disputed parts of the report. Meta spokesperson Andy Stone told Reuters that the anti-fraud task force was always meant to be temporary and denied that CEO Mark Zuckerberg ordered its shutdown. Stone added that Zuckerberg had instructed teams handling scams and other high-risk threats to intensify efforts to reduce fraud across all Meta-owned platforms, including China.
The report adds to ongoing criticism of Meta’s approach to platform safety and raises fresh questions over how social media companies police their platforms — and whether financial incentives are undermining efforts to protect users from harm.
