Meta flags scam ads as its biggest threat in 2025

Internal documents show Meta Platforms (META) developed a strategy to curb scam advertising while reducing how much regulators could see.

The documents indicate the approach emerged after governments raised the prospect of rules requiring advertiser identity verification. Meta assessed such mandates as a risk to advertising revenue.

Last month, about 10% of Meta’s annual revenue, or roughly $16 billion, is tied to advertising scams and banned goods. The report said Meta generally bans advertisers only when systems indicate a high probability of fraud.

Data from fraud-reporting firm SafelyHQ cited Facebook in most scam complaints that identified a platform. The complaints numbered more than 50,000.

The new documents describe an effort that began after regulators in Japan highlighted a rise in scam ads on Facebook and Instagram. The ads included fake investments and artificial intelligence-generated celebrity endorsements.

Meta focused on its public Ad Library, which allows searches of ads running on its platforms. Employees tracked common keywords used by regulators and removed ads that appeared fraudulent from search results and from Meta’s systems.

The work was described internally as managing “prevalence perception.” The goal was to make problematic ads difficult to find for regulators, investigators, and journalists.

Within weeks, internal reports showed a sharp decline in scam ads appearing in searches. A Japanese legislator later praised the apparent improvement, and Japan did not impose new verification rules.

Meta then expanded the approach into a global playbook, according to the documents. Similar methods were used in the United States, Europe, India, Australia, Brazil, and Thailand.

Former Meta fraud investigator Sandeep Abraham said the tactic distorted the transparency the Ad Library was meant to provide. He described it as “regulatory theater.”

Meta disputed that view. Spokesman Andy Stone said fewer scams in the Ad Library reflect fewer scams overall.

The documents also show Meta concluded universal advertiser verification would significantly reduce scams but cost about $2 billion and reduce revenue. Meta has adopted such verification only where required by law.

In Taiwan, new rules coincided with sharp declines in scam ads, but internal analyses found blocked ads were often redirected to other countries. Similar lobbying efforts in Hong Kong helped avoid new verification mandates, including coordination with Google.

The documents say Meta has assigned scam advertising its highest internal risk rating for 2025 as regulatory scrutiny increases.