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

Internal documents from Meta, the parent company of Facebook, Instagram, Threads, and WhatsApp, have revealed that the platform generates substantial revenue from what has been termed “fake ads,” which refer to fraudulent advertising practices. According to reports from Reuters, these documents indicate that Meta could earn as much as $16 billion annually from such “high-risk” advertisements, amounting to approximately 10 percent of its overall sales.

The internal analysis shows that Meta displays these high-risk ads around 15 billion times each day, with data tracing back to December 2024. Many of these ads reportedly contain clear indications they could be fraudulent and, in many jurisdictions, illegal. Despite the alarming figures, Meta has publicly downplayed the extent of its revenue from these ads, suggesting the actual income from fraudulent advertising may be closer to $7 billion.

The company has stated that earlier estimates of 10.1 percent of sales being attributed to fraudulent ads were inflated. In a statement to Reuters, Meta asserted that the sales figures primarily stemmed from automated advertising processes, which often led to the promotion of questionable content.

Concerns Over Revenue vs. User Protection

Internal documents further reveal the challenges Meta faces in combating fraudulent ads. There appears to be a significant concern within the organization that efforts to eliminate these ads could result in a drastic loss of revenue. A paper dated February 2025 indicated that the team responsible for addressing fraudulent content was restricted from implementing measures that could reduce overall sales by more than 0.15 percent.

Following discussions with Meta’s CEO and co-founder, Mark Zuckerberg, a gradual plan has been established to reduce the revenue dependency on these ads. The goal is to decrease the percentage of revenue from fake ads to 7.3 percent by the end of 2025, followed by 6 percent by the end of 2026, and around 5.8 percent by the end of 2027.

Failures in Addressing User Reports

Another concerning detail revealed in the internal documents is Meta’s handling of user complaints regarding fraudulent advertisements. Reports indicate that the company has largely ignored these complaints, with 99 percent of cases not pursued further. Internally, Meta attributed this lack of action to insufficient automated testing options.

Despite these challenges, Meta has expressed intentions to improve its processes for addressing fraudulent advertising. The documents suggest that improvements are in the pipeline, as the company acknowledges the need for a more proactive approach to user safety and advertising integrity.

As the scrutiny over Meta’s advertising practices continues, the implications of these findings raise important questions about the balance between revenue generation and user protection in the rapidly evolving digital advertising landscape.