Meta is reportedly reaping large profits from fraudulent advertisements. An investigative report by Reuters, utilizing Meta’s internal documents, reveals that the company’s platforms showcase an estimated 15 billion “higher risk” scam ads each day. A document from 2024 noted that Meta generates approximately “$7 billion in annualized revenue” from these scam ads on a yearly basis.

The files indicate that Meta expected up to 10 percent of its advertisement revenue for 2024 to come from ads promoting scams and prohibited products.

Reuters stated: “A collection of previously undisclosed documents examined by Reuters also reveals that the social media behemoth for at least three years failed to detect and eliminate a surge of ads that put Facebook, Instagram, and WhatsApp’s billions of users at risk of fraudulent e-commerce and investment schemes, illegal online casinos, and the distribution of banned medical items.”

Scam ads have become a prevalent aspect of online experiences, and Mashable has often covered deceptive Facebook advertisements. You might encounter a Facebook ad for an AI-powered photo editing tool and inadvertently download malware, or come across one for Joann fabrics, which is likewise a scam. The report implies that this is a lucrative sector of Meta’s advertising operation.

Per the internal documents, Meta “only prohibits advertisers if its automated systems estimate that the marketers are at least 95% likely to be engaging in fraud,” whereas other potential scammers are subjected to a higher penalty rate. This tactic may dissuade some scammers but also produces significant revenue for Meta, totaling billions yearly.

The next time you think about clicking on an ad on Facebook or Instagram, proceed with caution.