Recent internal company documents reportedly accessed by Reuters show that Meta may generate up to 10 percent of its annual revenue, about 16 billion dollars, from scam advertising and promotions for banned goods. The documents reveal that Meta’s platforms may display around 15 billion high risk scam ads every day. These findings highlight a long standing concern among Facebook and Instagram users who frequently complain about fraudulent promotions with little visible response from the company. Although Meta cannot manually respond to every user report, the leaked documents suggest the company may be aware of the scope of the problem and could be under responding due to the revenue these ads generate.

How Scam Ads Impact Legitimate Advertisers

If scam promotions are contributing significantly to Meta’s ad revenue, the consequences extend beyond consumer protection. Rising scam ad demand may push overall advertising costs higher for legitimate brands. Data also shows that users who engage with scam ads are more likely to be shown additional fraudulent content due to Meta’s ad personalization system. This creates a negative cycle that benefits scammers and increases platform wide ad pressure. Key concerns include:

• Higher overall ad costs driven by fraudulent demand

• Repeated exposure for users who click on scam content

• Reduced trust in Meta’s advertising ecosystem

Growing Global Losses to Scams

The Global Anti Scam Alliance reports that victims lost at least one trillion dollars to scams last year. According to its 2025 Global State of Scams report, 23 percent of adults globally have had money stolen through scam activity, with significantly higher rates in South America and Africa. With Meta’s massive global reach, regulators in many regions are likely to push for deeper investigation into the company’s handling of illegal and deceptive ads. The scale of the losses and the rising threat of digital scams are increasing pressure on tech platforms to close gaps in enforcement.

Meta’s Response and the Unfolding Regulatory Scrutiny

Meta disputes the claims, stating that the internal documents cited by Reuters do not fully represent the complexity of the issue. The company also highlights improvements in its detection tools, claiming a 58 percent reduction in user reports of scam ads in 2025. Still, the optics are challenging. If regulators determine that Meta knowingly allowed fraudulent ads for profit, the company could face substantial fines. For any enforcement action to be meaningful, penalties would need to exceed the revenue generated from scam advertising. Meta now faces a balancing act between maintaining its advertising revenue and avoiding regulatory action that could threaten its reputation and long term strategy.

What Happens Next for Meta

As regulators begin reviewing the leaked documents, Meta’s advertising operations will likely come under deeper scrutiny. Any confirmed failures to address known scam activity could result in legal and financial consequences, alongside renewed public criticism. The outcome may also influence Meta’s investments in emerging technologies if resources are redirected toward compliance and oversight. The coming months will determine whether this becomes another reputational setback for Meta or a catalyst for stricter advertising safeguards across the industry.