Meta made $16 billion from scam ads last year

A recent study found that Facebook (META) hosts most reported social media scams. Critics say the problem persists because Meta places revenue ahead of user protection.

Internal documents reviewed by Reuters show Meta projected about $16 billion in revenue from scam-related ads last year. The figure represented roughly 10 percent of the company’s total revenue.

Experts cited in the report said Meta bans advertisers only when systems detect a 95 percent likelihood of fraud. The company instead charges higher advertising fees to accounts flagged as suspicious, a practice critics describe as “pay to play.”

Former California prosecutor Erin West said the documents show fraud is a significant source of income for the company. She said Meta was aware of the activity and continued to allow it while charging additional fees to high-risk advertisers.

Data from fraud-reporting firm SafelyHQ showed Facebook was named in 85 percent of scam reports that identified a platform. The firm has collected more than 50,000 verified complaints.

SafelyHQ chief executive Patrick Quade said the reported cases represent a fraction of the total problem. He said the number of victims likely reaches tens of millions and reflects a systemic failure documented in Meta’s own records.

One victim, Brian Kuhn, said he lost $70 after buying records from a fake Facebook listing. He said the ads appeared closely tailored to his interests and blamed himself in part, while questioning why the platform allowed the sellers to operate.

The New York Post reported that lawmakers Josh Hawley and Richard Blumenthal have called for a federal investigation. They wrote that Meta charged higher rates for ads it suspected could be fraudulent, effectively imposing a “scam tax.”

Meta spokesperson Andy Stone rejected the claims. He said the company aggressively fights fraud and that scammers continually adapt their methods.

Internal Meta reports from 2025 found the company was involved in one-third of successful U.S. scams. The reports also said it was easier to advertise scams on Meta platforms than on Google.

Another victim, identified as Betty, said she bought counterfeit cosmetics from a Facebook ad. She said the targeting made the ads appear legitimate.

Consumer Reports and policy experts said Meta’s legal protections under Section 230 should be narrowed, particularly for paid advertising. They argued that companies profiting from ads should not control enforcement alone.