Meta Fraud Ads Investigation: Reuters Exposes Revenue Focus

Meta fraud ads investigation reveals how Meta allowed scam advertisements to run on its platforms to protect revenue, according to a Reuters report.

Meta allowed large-scale fraud ads on Facebook, Instagram, and WhatsApp. These ads trapped users in fake investment schemes, illegal gambling, and banned activities. Reuters revealed that many of these fraud ads came from ad networks linked to China.

The investigation showed that Meta knew about this fraud internally. However, the company avoided strict action because it feared revenue loss. Internal documents confirmed that Meta tolerated a certain level of fraud from China-linked advertisers.

China-Based Ads Generated Billions

Meta platforms are not available to the public in China. Still, Chinese companies can run ads targeting foreign users. In 2024, Meta earned over 18 billion dollars from China-based advertisers. This made up around 11 percent of its total revenue. Meta’s own estimates showed that about 19 percent of this income came from fraud or banned ads.

Read Also: Artificial Intelligence Faces Energy Crisis in 2025

Internal records showed that nearly one-fourth of global scam ads had links to China. These ads first appeared on Facebook or Instagram. Later, users were moved to WhatsApp groups. There, scammers shared fake investment advice and promised unrealistic profits. Users in the US, Canada, Taiwan, and other countries suffered heavy financial losses.

In 2024, Meta’s safety, finance, and engineering teams warned senior management. They said fraud from China was growing fast and harming users. Meta then formed a special anti-fraud team. This team reduced scam ads by almost half within months. The quality of China-based ads became similar to the rest of the world.

Later, Meta changed its policy at the executive level. The company stopped and then shut down the China-focused anti-fraud team. Meta also removed restrictions on new Chinese ad agencies. The company delayed steps that were proving effective. Internal documents said revenue concerns drove these decisions.

Within months, banned ads increased again. By mid-2025, fraud ads made up 16 percent of China-linked revenue. Meta decided to keep fraud at a “tolerable” global level instead of matching international standards.

Meta does not sell ads directly in China. It works through 11 large Chinese ad agency partners. These partners work with many smaller agencies and advertisers. This complex system allowed fake accounts, false identities, and policy evasion. Reports said weak and inconsistent enforcement by Meta made the problem worse.

Users Were Trapped Through Facebook and Instagram

Several cases showed users losing millions through fake investment ads on Facebook and Instagram. In one major US case, authorities seized 214 million dollars. Meta claimed it cooperated with law enforcement. However, internal documents showed scams continued on a large scale.

Reuters reported that Meta repeatedly rejected proposals to shut down major scam accounts. Each time, executives cited a high revenue impact. One document clearly stated that action was avoided due to “very high revenue impact.”

The investigation concluded that Meta knew the scale and impact of China-linked fraud ads. The company still prioritized business interests over user safety. This raises serious questions about transparency, accountability, and regulation of global tech companies.

In conclusion, the Meta fraud ads investigation highlights how revenue concerns influenced Meta’s decisions, despite clear risks to users worldwide.