Slate Daily Feed What Next: TBD | How Meta Profits Off Fraud
Nov 16, 2025
Jeff Horwitz, a tech reporter for Reuters, dives into how Meta, the parent company of Facebook and Instagram, profits from scam ads, which make up 10% of its revenue. He reveals that Meta platforms are involved in a third of all successful scams in the U.S. The conversation explores Meta's internal estimates, their lax enforcement of ad policies, and the challenges they face balancing revenue with user safety. Horwitz also discusses the implications for scam victims and the company's future amidst growing scrutiny and legal risks.
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Scam Ads Are A Large Revenue Stream
- Meta estimated roughly 10% of its revenue in 2024 came from scam or banned-good ads, amounting to up to $16 billion.
- Internal documents show the company recognized this as a substantial, non-trivial revenue stream tied to enforcement choices.
Sophisticated Scam Ads Look Legit
- Jeff found a realistic-looking McCormick spices scam ad that illustrates how sophisticated scams appear legitimate.
- He notes sophisticated scams hide cues, making users less likely to recognize fraud at first glance.
AI And Organization Industrialized Scams
- Scamming has become industrialized via AI and organized groups, lowering skill and language barriers.
- AI lets perpetrators mimic dialects and personas, and organized operations scale scams globally.