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Leaked internal documents have revealed that Meta Platforms Inc. (NASDAQ:META) projected a revenue of approximately $16 billion from scam advertisements and banned goods in 2024, which would account for nearly 10% of its total revenue.
As per the documents, Meta was unable to prevent a flood of ads that exposed billions of users to fraudulent e-commerce and investment schemes, illegal online casinos, and the sale of prohibited medical products.
These documents, which were dated December 2024, suggested that Meta displayed an estimated 15 billion “higher risk” scam ads daily.
Another document from within the company indicated that these ads contributed to about $7 billion of Meta’s annual revenue, reports Reuters.
Despite being aware of the “scammiest scammers,” Meta was reportedly slow in taking action against them. Some big spenders, referred to as “High Value Accounts,” were able to accumulate over 500 strikes without being shut down.
The company’s ad-personalization system meant that users who clicked on scam ads were likely to see more of them.
As per the outlet, a spokesperson from Meta argued that the 10% revenue projection was “rough and overly-inclusive,” and not a “definitive or final figure.”
They also stated that the company has been actively fighting fraud and scams, with user reports about scam ads decreasing by more than 50% over the last 15 months.
This revelation could potentially harm Meta’s reputation and user trust, given the company’s inability to effectively control scam advertisements. The fact that these ads contribute significantly to Meta’s revenue might raise questions about the company’s commitment to user safety and its efforts to combat fraudulent activities.
The slow response in taking action against “High Value Accounts” could also be seen as a tacit endorsement of these activities.
Despite the company’s claim of a decrease in user reports about scam ads, the leaked documents suggest a different reality.
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