Meta’s Internal Documents Reveal Billions in Revenue from Fraudulent Ads

Meta, the parent company of Facebook, Instagram, Threads, and WhatsApp, has reportedly acknowledged that it generates substantial revenue from what are termed “fake ads.” Internal documents suggest the company earns up to $16 billion annually from advertisements that fall under the category of fraudulent or high-risk. This represents approximately 10 percent of Meta’s total advertising revenue.

According to a report by Reuters, these internal documents indicate that Meta displays “higher risk advertising” approximately 15 billion times per day. This type of advertising often includes offers for prohibited goods, illegal casinos, and other fraudulent promotions. While the total estimated revenue from these ads is staggering, another document from late 2024 suggests that the actual revenue from such ads was closer to $7 billion.

Meta has stated that the figures reported in the internal documents may present a distorted view of the company’s approach to handling fraudulent advertising. The organization has clarified that the estimate indicating 10.1 percent of sales in 2024 being derived from fake ads was likely exaggerated.

Internal Struggles with Fraudulent Advertising

Despite the company’s efforts to reduce the prevalence of fraudulent ads, internal documents reveal challenges in implementing effective measures. According to a document from February 2025, the team tasked with combating fraud faced restrictions that limited their ability to act if it would cost more than 0.15 percent of total group sales. This decision was made after discussions with Meta’s founder and CEO, Mark Zuckerberg.

The company has reportedly aimed to gradually lower the share of its revenue derived from fake advertising. Plans include reducing this figure to approximately 7.3 percent by the end of 2025, 6 percent by the end of 2026, and around 5.8 percent by the end of 2027.

User Reports and Company Response

Another concerning aspect outlined in the internal documents is Meta’s handling of user reports regarding fraudulent ads. Reports indicate that the company has largely ignored these complaints, with 99 percent of cases not being pursued further. Internally, Meta attributed this inaction to a lack of automated testing capabilities.

According to the Reuters report, Meta is aware of the need for improvement in this area and is taking steps to enhance its response to user reports. This reflects a broader struggle within the company to balance revenue generation with user protection, raising questions about the prioritization of financial goals over the safety of its user base.

As Meta grapples with these revelations, the implications for its advertising practices and user trust remain significant. The company’s internal documents shed light on a complex issue that intertwines ethical advertising with substantial financial stakes.