Meta's Revenue: A Significant Portion Tied to Fraudulent Ads, Report Alleges
A Reuters report alleges Meta projected 10% ($16 billion) of its annual revenue from fraudulent ads last year. The report claims Meta failed to protect users from scams for three years, despite having detection systems. Meta denies distorting its anti-fraud efforts, citing a 58% reduction in user reports.
Meta's Revenue: A Significant Portion Tied to Fraudulent Ads, Report Alleges
By Amanda Silberling – November 6, 2025
A recent report by Reuters has brought to light a significant finding: Meta, the parent company of Facebook and Instagram, estimated that 10% of its total annual revenue—approximately $16 billion—for the past year was projected to come from fraudulent advertisements across its various applications. This projection underscores a concerning reliance on revenue streams linked to scams.
The documents obtained by Reuters further indicate that for a period of three years, Meta reportedly failed to adequately safeguard its users from advertisements promoting illegal gambling, dubious investment schemes, and prohibited medical products. These fraudulent ads are designed to entice unsuspecting users with non-existent products or services, often with the intention of illicitly soliciting payments from less discerning individuals.
Image Credits: Facebook (Screenshot by Reuters)
While Meta possesses a system designed to assess the probability of an advertising campaign being fraudulent, the company's policy dictates that an advertiser's account is only deactivated if there's a 95% certainty of fraud. In cases where suspicion exists but doesn't meet this high threshold, Meta reportedly charges these advertisers higher rates. This approach, intended to deter fraudulent advertising, paradoxically contributes to Meta's financial gains when these advertisers proceed with their campaigns.
TechCrunch reached out to Meta for comment but did not receive a response prior to publication. According to the Reuters report, Meta spokesperson Andy Stone contested the findings, asserting that the documents used by Reuters present a "selective view that distorts Meta’s approach to fraud and scams." Stone added that Meta has made strides in combating fraud, having reduced user reports of scam ads by 58% and removed over 134 million scam ads from its platforms over the last 18 months.