Last year, Meta internally projected that 10% of its overall annual revenue — which was estimated to be US$16 billion (~RM66 billion) — came from running fraudulent ads, according to a report from Reuters. Not only that, but the publication further claims that Meta “failed to identify and stop an avalanche of ads” and allowed the billions of Facebook, Instagram, and WhatsApp users to be exposed to said fraudulent ads.
These scam ads include illegal gambling, investment schemes, and the sale of banned medical products. Reuters cited a December 2024 document stating that the company displays an estimated 15 billion obviously fraudulent ads to users each day.
Meta does have an integrated system that automatically flags suspicious ads. However, the company will only ban accounts if it’s 95% certain the advertiser is committing fraud. If Meta isn’t as certain, the company will instead apply higher ad rates to deter them from advertising. Should advertisers accept the higher fees, the move would only add to the company’s profits.
The Reuters report also states that Meta conducted a self-appraisal from 2021 to this year across its finance, lobbying, engineering, and safety departments. Through this, Meta measures how much harmful or abusive content exists on its platforms but remains hesitant to act against it, as doing so could harm its business interests. Sandeep Abraham, a fraud examiner and former Meta safety investigator, said that Meta’s acceptance of revenue from suspicious sources shows the lack of regulatory oversight of the advertising industry.
Meta spokesman Andy Stone said that the document Reuters used for its report “present a selective view that distorts Meta’s approach to fraud and scams.” The company later determined that the true number was lower because the original estimate included “many” legitimate ads as well. However, the social media giant did not provide an exact figure.
Stone also said that Meta has reduced user reports of scam ads by 58%. He also added that the company has removed more than 134 million pieces of fraudulent ads from its platforms.
Amanz reported that Malaysians are not exempt from Meta’s “avalanche” of fake ads. If you may recall, Communications Minister Datuk Fahmi Fadzil even called out the social media giant, as well as other platforms, for not doing enough to fight scams and other harmful content on their platform. Locally, the government is now reviewing the implementation of an eKYC to protect children and help curb online scams.
