What Next | Daily News and Analysis TBD | How Meta Profits Off Fraud
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Nov 16, 2025 Jeff Horwitz, a tech reporter for Reuters specializing in platform safety, sheds light on Meta's troubling relationship with scam ads. He reveals that 10% of Meta's revenue is linked to these ads, with the platform being a significant conduit for scams in the U.S. Horwitz discusses how Meta’s algorithms inadvertently amplify fraudulent content and how scammers exploit the system. The conversation unveils the challenges in enforcement, the economics behind scam ads, and the precarious balance Meta must strike between profit and user safety.
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Meta's Revenue Heavily Tied To Scam Ads
- Meta estimated that 10% of its revenue in 2024 came from scam or banned-good ads, as reported from internal documents.
- Reuters obtained internal figures showing up to $16 billion tied to violating ads, revealing a systemic reliance on such ad revenue.
Sophisticated Scams Masquerade As Legit Offers
- Jeff found a seemingly legitimate ad for McCormick spices that was actually part of a scam campaign.
- He notes sophisticated scams often look normal at first glance, making them harder to spot.
Scam Content Reaches Tens Of Billions Daily
- Meta reports about 22 billion daily views of organic scam content and 15 billion views of scam ads, totaling 37 billion scam views per day.
- That scale shows scams are pervasive across both paid and unpaid content on Meta's platforms.