KUALA LUMPUR – Social media giant Meta internally forecasted late last year that around 10% of its total revenue – or approximately US$16 billion (RM67 billion) – would come from advertisements promoting scams and banned goods, according to confidential company documents.
The documents, which were reviewed by Reuters, reveal that for at least three years, Meta failed to adequately address the surge in ads promoting fraudulent e-commerce, illegal online gambling, banned medical products, and investment scams. These ads, visible on Facebook, Instagram, and WhatsApp, have put the company’s billions of users at risk.
A December 2024 document indicates that Meta estimates 15 billion “high-risk” scam ads are shown to users every day, with this category generating about $7 (RM29bil) billion annually.
These ads typically exhibit clear signs of fraud, yet Meta’s automated systems only remove ads when fraud is predicted with 95% certainty, according to the documents. If fraud is suspected but not confirmed to such a degree, Meta charges higher ad rates as a disincentive to suspected scammers.
Meta’s algorithms, designed to personalise user experiences, often exacerbate the problem by showing users more scam ads if they have clicked on similar ones in the past.
The internal documents further highlight Meta’s struggle with balancing the need for strict fraud enforcement and the desire to preserve its business interests. The company’s financial motivations are laid bare as its internal estimates suggest that 10.1% of its revenue in 2024 could stem from prohibited ads.
Despite this, Meta spokesperson Andy Stone defended the company’s actions, claiming that the figures presented by Reuters were “selective” and that the company’s actual scam-related revenue is lower than projected.
He also stressed that Meta has made substantial progress in combatting fraud, citing a 58% reduction in user-reported scam ads in the past 18 months and the removal of 134 million scam ads in 2025.
However, other documents reveal that Meta’s own research suggests its platforms are deeply embedded in the global fraud economy. One such presentation from May 2025 estimated that Meta’s platforms are linked to a third of all successful scams in the United States.
Moreover, the company admitted that competitors like Google were doing better in detecting and removing scam ads, with Meta conceding that “it is easier to advertise scams on Meta platforms than Google.”
These revelations come as regulatory pressure mounts from governments around the world. In the US, the Securities and Exchange Commission (SEC) is investigating Meta over its involvement in running ads for financial scams, while in the UK, regulators found that Meta’s platforms accounted for 54% of all scam-related financial losses in 2023.
Prior to the revelation, Malaysia’s Communications Minister Datuk Fahmi Fadzil met with Meta representatives in September 2025, urging the company to strengthen its efforts to curb online criminal activities.
He pointed out that Meta has struggled to address illegal content on its platforms, including online gambling, scams, and the sale of illicit goods like drug-laced e-cigarettes.
Fahmi also cited troubling statistics, such as 168,774 content removal requests for Facebook alone, with 59% of these originating from the platform.
While many requests were acted upon, others, including scams, remained active, leading to concerns about Meta’s commitment to tackling online crime.
The Malaysian Communications and Multimedia Commission (MCMC) reported that e-commerce fraud involving Meta’s platforms had caused losses exceeding RM248 million between 2023 and August 2025.
Despite these issues, Meta assured the government it was committed to improving its cooperation and intensifying its efforts to manage illegal content.
The company also faces ongoing calls to implement more robust age verification systems to prevent minors from accessing harmful content.
Meanwhile, internal Meta documents indicate the company has recognised the financial implications of cracking down on scam ads.
One 2025 document notes that Meta earns $3.5 billion (RM14.6 billion) every six months from ads that present high legal risks, such as misleading ads that impersonate public figures or brands.
This revenue stream could be impacted by future regulatory penalties, which are expected to total up to $1 billion (RM4.19 billion), according to internal assessments.
Despite these concerns, Meta has opted for a gradual approach to reduce scam ad revenue, with targets set to reduce such ads from 10.1% of its 2024 revenue to 7.3% by the end of 2025.
Documents reveal that Meta is aware of the risks, with one memo indicating that cutting scam ad revenue too quickly could harm business forecasts.
The company has also begun implementing “penalty bids” for suspected fraudsters, which increase the cost of placing ads for suspected scammers, reducing their chances of winning ad auctions.
While this approach has seen some success in reducing scam ads, it has had a mixed impact on Meta’s revenue, with the company benefiting financially from these penalty bids, even as the number of scam ads declines. – November 7, 2025