Leaked internal documents have uncovered a massive revenue stream for Meta, with the social media giant reportedly projecting to earn billions from fraudulent advertisements across its platforms.
The Scale of Meta's Fraud Ad Problem
According to the internal assessment, Meta expected to generate approximately 10 per cent of its 2024 revenue from problematic advertisements. This staggering figure amounts to around $16 billion originating from what the company internally classifies as 'higher risk' ads.
The documents reveal that these revenue streams include multiple categories of questionable content. Among them are e-commerce and investment scams, illegal online casinos, and the sale of banned medical products that circulate on Facebook, Instagram, and WhatsApp.
Systemic Failures in Fraud Detection
Perhaps most concerning is the revelation that Meta has struggled for at least three years to effectively identify and stop the flood of fraudulent advertisements. The internal estimates suggest an astonishing 15 billion 'higher risk' scam ads are shown to users daily across Meta's platforms.
This daily deluge of questionable content generates approximately $7 billion annually for the tech company, according to the leaked assessment dated Friday 07 November 2025.
The documents also shed light on Meta's internal policy towards advertisers suspected of fraud. The company reportedly only bans advertisers when there is a 95 per cent certainty of fraudulent activity. When this threshold isn't met but suspicion remains, Meta instead charges higher advertising rates as a form of penalty.
Meta's Response to the Allegations
A Meta spokesperson has challenged the characterization presented by the leaked documents, describing them as providing a 'selective view' that distorts the company's actual approach to combating fraudulent advertising.
The spokesperson specifically disputed the 10.1 per cent revenue estimate, calling it 'rough and overly-inclusive' while affirming the company's ongoing efforts to fight fraud and scams across its platforms.
This revelation comes at a sensitive time for Meta, following recent public demonstrations where CEO Mark Zuckerberg experienced technical difficulties during a 'super intelligence' showcase, further raising questions about the company's operational controls.
