A recent investigation by Reuters reveals that Meta Platforms projected as much as 10 % of its 2024 annual revenue—roughly $16 billion—came from advertising promoting fraudulent products, banned goods and deceptive schemes across its platforms.
These ads appeared on Facebook, Instagram and WhatsApp despite internal flags and risk assessments.
Key Findings & Internal Practices
- One internal Meta slide cited 15 billion “higher‑risk” scam ads shown daily in December 2024.
- Meta’s policy only scrubs advertisers if its automated systems are 95 % + sure they’re committing fraud. When certainty is lower, the advertiser may be charged higher rates rather than removed—a system internally termed “penalty bids.”
- Internal guardrails allegedly limited enforcement actions if they risked costing more than 0.15 % of Meta’s total revenue—approximately $135 million in the first half of 2025—according to documents.
- Meta estimated that its platforms were involved in about one‑third of all successful scams in the U.S. through 2024.
Implications for Brands & Retailers
For retailers, brands and agencies operating in an omnichannel ecosystem, this revelation raises several red‑flags and strategic considerations:
- Brand safety risk: If major ad platforms profit from or fail to block scam advertising, brand placements—even if legitimate—may be near fraudulent campaigns, eroding consumer trust and increasing reputational risk.
- Media cost justification: With Meta potentially earning from exploitative ads, premium ad rates may include hidden risk premiums. Marketers should evaluate platform inventory alongside brand safety metrics.
- Channel integrity matters: As brands rely on digital channels, ensuring your media allocation is free from adjacency to fraudulent content becomes a differentiator. Demand transparency from platforms on ad‑quality filters.
- Regulatory exposure: Meta faces increased scrutiny from regulators (e.g., in the U.S. and UK) over facilitation of scams. Brands using these channels may inherit indirect regulatory risk or negative associations.
Conclusion
Scale and reach don’t automatically equal control and safety. For brand leaders and marketing executives in the omnichannel retail space, this serves as a caution: digital advertising platforms are not impenetrable fortresses, and vigilance around media channel integrity is as important as product, store and customer experience strategy.
