Is Meta Profiting Off Of Facebook And Instagram Scams?
## Advertising Practices on Meta Platforms
Advertising Practices on Meta Platforms
In November, advertisements on Facebook and Instagram promised a weekly return of 10% on investments, equating to over 14,000% annually. This claim is inconsistent with legitimate financial practices. Despite violating Meta's guidelines on quick profit promotions, the ads reached over 20,000 users globally. They prompted numerous inquiries from individuals interested in participating.
The advertisements were placed by a reporter aiming to test Meta's ad system compliance. The reporter utilized Meta's Partner Directory to contact agencies that facilitate ad placements. Some agencies, including Vietnam-based Bluefocus, have been identified as promoting methods to bypass Meta's restrictions.
Other agencies also assisted in ad placements for a fee, payable in cryptocurrency. These agencies are linked to significant Chinese firms involved in Meta's ad sales operations, despite Facebook and Instagram being inaccessible in China.
Financial Impact of Scam Advertisements
Meta's internal documents indicate that approximately 10% of its annual revenue, estimated at $16 billion, is derived from scam advertisements and promotions of prohibited products. Daily, users encounter around 15 billion high-risk scam ads, contributing approximately $7 billion annually to Meta's revenue.
In November, advertisements on Facebook and Instagram promised a weekly return of 10% on investments, equating to over 14,000% annually.
Meta's system allows suspected scam ads unless fraud certainty reaches 95%. Below this threshold, advertisers face higher costs as a deterrent rather than an outright ban.
Meta's advertising algorithm customizes user experiences. Users who interact with scam ads are likely to receive more such content, driven by perceived interest. In the UK, 54% of payment-related scam losses in 2023 were linked to Meta platforms, significantly higher than other social networks.
Meta's definition of scams has shown discrepancies. In Singapore, only a fraction of reported scams were deemed to breach Meta's policies, highlighting a potential gap in scam identification.
Meta has contested the internal estimates, arguing they misrepresent the situation. The company claims a significant reduction in scam ad reports and has removed over 134 million scam ads in 2025. Meta aims to lower scam-related revenue from 10.1% in 2024 to 7.3% by the end of 2025.
Regulatory bodies in the US and UK are scrutinizing Meta's handling of scam advertisements, with the Securities and Exchange Commission conducting an investigation.
Based on reporting by techround.co.uk.