Meta Must Stop Scammers or Face the Fallout

Recent investigations reveal that Meta, the parent company of Facebook, Instagram, and WhatsApp, continues to generate immense revenue from fraudulent advertisements, despite clear internal awareness of the issue. According to internal documents, users across Meta’s platforms encounter roughly 15 billion scam ads daily, ranging from fabricated stimulus checks featuring public figures to AI-generated endorsements for cryptocurrency schemes. The company’s own safety teams reportedly acknowledged that one-third of all U.S. scams involve its services, yet Meta’s response remains inadequate, possibly because these deceptive ads contribute an estimated $7 billion or more to its annual earnings.

The scale of financial harm caused by these scams is staggering. Last year, Americans reported losses of $16 billion to the FBI, a figure experts believe understates reality due to widespread underreporting. On a global level, the Global Anti-Scam Alliance approximates that scammers extracted over $1 trillion from victims in 2024 alone. Those most affected often include seniors living on fixed incomes, young job seekers, immigrants, and individuals navigating personal crises, people for whom the prospect of quick financial relief can be irresistible. For them, losing even a few hundred dollars can trigger severe hardship.

Internally, Meta reportedly earns about $16 billion annually from scam and prohibited advertisements, accounting for roughly 10% of its total revenue. Of that, $7 billion stems from ads displaying blatant scam indicators, such as unauthorized use of celebrity images or brand logos. Given these profits, even substantial regulatory fines may seem insignificant to the tech giant.

Many ask what can be done to curb this epidemic. Placing the burden on individuals through financial literacy campaigns often compounds the shame felt by victims. Instead, accountability must shift to Meta for its part in enabling fraudulent activity. The company’s current policies appear designed to permit, rather than prevent, scams. Reuters found that Meta’s systems demand 95% certainty before pulling a suspicious ad, and advertisers can accumulate numerous “strikes” before facing a ban. This lax enforcement allows scammers to continue running ads, sometimes slightly altered versions of previously flagged ones, for months, extracting money from unsuspecting users. The payment platform Zelle disclosed that half of all scams reported by its users were linked to Meta.

Compounding the problem, social media algorithms often target users who engage with scam content, exposing them to even more fraudulent offers. This creates a dangerous feedback loop where the most susceptible individuals face escalating risks.

Meta spokesperson Andy Stone challenged the Reuters findings, calling the leaked documents a “selective view” that misrepresents the company’s anti-fraud initiatives. He noted that user reports of scam ads have dropped by more than 50% in recent months and described the internal estimates as “overly-inclusive.” Still, the proliferation of fraudulent ads persists, increasingly powered by AI and deepfake technology.

Behind many of these schemes are sophisticated criminal networks operating scam compounds in Southeast Asia. These operations often exploit human trafficking victims, who are coerced into executing romance or investment scams under threat of violence. As these groups adopt automation and artificial intelligence, their capacity to deceive grows, making fake endorsements and synthetic media more convincing than ever.

So what can be done? For starters, Meta should immediately lower the threshold for ad removal. A single confirmed scam ad should trigger the deletion of all ads from that advertiser. The company must also enhance its fraud detection capabilities. The nonprofit Tech Transparency Project demonstrated how simple criteria, such as identifying fake government offers or previously removed scam content, can effectively flag fraudulent ads. If a small watchdog can achieve this, a corporation with Meta’s resources has no excuse.

Additionally, Meta should implement a verified advertiser program, requiring legitimate identification for all ad purchases. This would not only reduce deepfake-driven scams but also create accountability trails for law enforcement.

Regulatory intervention is equally critical. Governments should treat platforms like Meta as complicit in the scam economy, given their financial incentive to tolerate fraudulent content. The FTC could mandate pre-screening of ads, independent audits of advertising systems, and identity verification for advertisers. Penalties should be severe enough to outweigh the profits gained from scam ads, possibly funding a compensation program for victims.

If federal regulators hesitate, state attorneys general can leverage existing consumer protection laws to file lawsuits and enforce stricter standards. This is not a partisan issue; scams impact people across all demographics.

Meta’s track record raises serious concerns. In 2018, the company admitted it failed to prevent its platforms from being weaponized to incite genocide in Myanmar, a nation now hosting scam compounds that enrich Meta through fraudulent ads. If past ethical failures haven’t spurred lawmakers to action, perhaps the billions stolen from vulnerable users will.

(Source: The Verge)