By Matt Underwood Meta is earning a fortune on a deluge of fraudulent ads, documents show, and that’s the core of the problem. Internal projections from late last year revealed that Meta anticipated raking in about 10% of its annual revenue, a staggering $16 billion, from running ads for scams and illegal goods. Think about that for a moment. This isn’t a small side hustle; it’s a major revenue stream.
Further investigation by Reuters uncovered a consistent pattern of failure. For at least three years, Meta has struggled to identify and stop a flood of ads that expose billions of users on Facebook, Instagram, and WhatsApp to various forms of fraud. These range from deceptive e-commerce and investment schemes to illegal online casinos and the sale of banned medical products.
Shockingly, one document from December 2024 states that the company displays an estimated 15 billion “higher risk” scam advertisements daily to its users. These are the ads that clearly scream “fraud.” Meta is making approximately $7 billion annually from this category of scam ads. It’s a staggering figure that highlights the scale of the problem.
The situation isn’t surprising, really. The internet advertising landscape has always been a bit of a Wild West, and AI is only making things worse. It is easy to see how Meta is contributing to the societal problems we are facing today. It is a toxic platform, and that’s not up for debate. There are many that would argue that the actual amount of fraudulent advertising could be even higher.
The quality control on even legitimate ads is often lacking. The advertising divisions are no different from sales, and sometimes it seems like the approval process is a bit loose. This means that users are clicking through ads, and landing on websites that are just one letter off from the real deal. It is very easy to find piles of illegal scam sites.
At some point, these massive social media companies need to be held accountable for the content they host. There’s zero vetting going on. Television broadcasters would be shut down if they started airing commercials for blatant prostitution or scam sites. Yet, somehow, this doesn’t apply to some of the busiest media giants in the world.
The worst part is that when you report these blatantly scammy ads, the automated system tells you you’re wrong, and the ads stay up. They don’t care about consumer safety. The more bots and scams they can get on the platform the higher their phony engagement metrics look. This artificially inflates the price they can charge for even legitimate ads.
The only real power we have is to delete our accounts from the platform. Meta is one of the most evil companies to ever exist. They couldn’t care less about user safety, and Mark Zuckerberg needs to be held accountable. Social media companies should no longer have immunity from libel for the content posted. If the NYT allowed content that was full of lies, they’d be sued into oblivion. It’s time for the same standard for modern publishing companies: moderate and fact-check your content, especially in the age of AI.
The endless stream of fake “games” (pay for play) that advertise on these platforms are also a problem. They often include fake gameplay to lure people in, relying on gambling addicts and the neurologically afflicted. The sheer volume of AI-generated ads, with celebrity endorsements, is also alarming. How is it legal for Gary Lineker to be selling things he clearly isn’t?
Many have had their lives negatively affected by these scams, with charges to their credit cards, and accounts being hacked because of malicious ads. It is easy to see why Facebook and Instagram have become a hellscape for many users. The question is, if Meta is making so much money from these scams, how much are the scammers bringing in that justifies them paying Meta that total?
Many have noted that the phone companies could block so many spam calls, but the scammers pay them to use them. These types of platforms are being overrun with unethical practices. If you know how unethical it is, why do you still use it?
Meta and those running the platform have shown they don’t care about anyone’s safety. They’re pretty much partners in crime with the scammers and have no financial incentive to protect their users. It’s a sad state of affairs when a company seems to prioritize profit over user well-being.
Facebook should be just as liable for those ads as the company that likely barely exists. The lack of human moderation and the ineffectiveness of reporting systems add to the problem. It seems like the only thing being moderated is the ability to actually get customer support.
Advertisements are designed to trick you into wasting money. It’s hard to believe so many people still click on ads. The entire web economy has been built on lies. Online advertising should be as regulated as it is in other spaces.
What is happening is the legal line is being blurred. The companies are minimizing overhead and axing staff. They’re telling users they’ve removed the ad, but they haven’t. It is time for a change in these incentives.