tech
Bombshell report exposes how Meta relied on scam ad profits to fund AI
Meta goosed its revenue by targeting users likely to click on scam ads, docs show.
TL;DR
- Meta projected billions in revenue from scam ads, with internal documents indicating a 10% revenue share in 2024.
- The company allegedly allowed "high value accounts" to accrue strikes to avoid a drop in revenue, which was prioritized for AI growth.
- Meta's ad-personalization system reportedly helps scammers target users likely to click on their ads.
- Internal estimates suggest users encounter 15 billion "high risk" scam ads daily across Meta's platforms.
- Meta is most concerned about "imposter" ads impersonating celebrities or brands, fearing they could deter advertising and engagement.
- A former Meta safety investigator suggested regulators should intervene, comparing Meta's practices to banks profiting from fraud.
- Meta spokesperson Andy Stone disputed the internal documents' portrayal, calling it a "selective view" and the revenue estimates "rough and overly-inclusive."
- Despite efforts, Meta's safety team estimated its platforms were involved in a third of all successful scams in the US.
- In 2023, Meta reportedly dissolved a team handling advertiser concerns about brand-rights issues and limited safety staff computing resources for AI and VR.
- A 2025 document shows Meta weighing how "abrupt reductions of scam advertising revenue could affect its business projections."
- Meta reportedly cautioned teams vetting questionable advertisers against actions that could cost more than 0.15% of total revenue, approximately $135 million.
- Meta appeared less likely to ramp up enforcement from police requests, with many flagged scams only violating the "spirit" of policy, not the "letter."
- Former Meta employees and researchers advocate for greater transparency and third-party access to ads to assess platform effectiveness against scams.
- Recommendations include notifying users who clicked on scam ads and donating ill-gotten gains to scam education nonprofits.