Meta Earns $16 Billion Annually from Fake and Misleading Advertisements

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Meta Platforms, one of the world’s largest technology companies and the parent of popular social media platforms such as Facebook, Instagram, and WhatsApp, is facing scrutiny over revenue generated from fraudulent advertisements.

According to a report by international news agency Reuters, nearly 10% of Meta’s total revenue in 2024—around $16 billion—came from fake and scam ads. Internal company documents reveal that for the past three years, Meta has taken limited action to curb promotions for illegal gambling, fraudulent investment schemes, and banned pharmaceuticals. These advertisements often promote products or services that do not exist, leaving many users vulnerable to scams.

While Meta uses an automated system to detect fraudulent ads, the company reportedly only disables an advertiser’s account once it is 95% certain the ad is deceptive. Until then, the ads remain active, and the company continues to collect revenue from these advertisers, boosting Meta’s overall earnings.

In response, Meta spokesperson Andy Stone told Reuters that the report misrepresents the company’s policies. He highlighted that over the past 18 months, Meta has reduced user complaints related to fraudulent ads by 58% and removed 134 million fake advertisements.

Experts, however, caution that if Meta prioritized user safety and trust over revenue, it would implement stricter ad verification processes. Current practices, they argue, indicate that profit appears to take precedence, potentially undermining user confidence.

Technology analysts warn that unless Meta takes more decisive action now, it risks losing users’ trust and damaging its brand value in the long term.