Meta Revenue from Scams: Report Reveals 10% Estimate

Meta's Revenue from Fraudulent Advertisements

Recent reports indicate that Meta estimated approximately 10% of its total yearly revenue – around $16 billion – originated from deceptive advertisements displayed across its applications, as detailed in a Reuters report.

Internal documents obtained by Reuters reveal a three-year period during which Meta did not adequately safeguard its users against advertisements promoting unlawful gambling activities, dubious investment opportunities, and prohibited medical products.

These misleading advertisements often present offerings that are nonexistent, potentially aiming to extract funds from unsuspecting individuals.

Meta’s Fraud Detection System

Meta employs a system designed to assess the probability of an advertising campaign being fraudulent. However, the company only disables an advertiser’s account when there is a 95% certainty of fraudulent activity.

In cases where suspicion exists but doesn't reach that threshold, Meta increases advertising costs for potentially fraudulent advertisers, hoping to deter further purchases. However, if these advertisers continue to spend, it ultimately boosts Meta’s profits.

Response to Reports

TechCrunch reached out to Meta for a statement but did not receive a response prior to publication. According to the Reuters report, Meta spokesperson Andy Stone asserted that the documents utilized “present a selective view that distorts Meta’s approach to fraud and scams.”

Stone further stated that, over the past 18 months, Meta has achieved a 58% reduction in user reports concerning scam advertisements.

Over 134 million scam advertisements have been removed from Meta’s platforms during this period.

Here's a summary of Meta's actions: