Meta Battles Scam Ad Avalanche on Social Platforms

Meta, the social media behemoth, projected that about 10% of its 2024 annual revenue would stem from advertising scams and banned goods, according to internal documents reviewed by Reuters. This revelation comes amid scrutiny over the company's handling of fraudulent advertisements on its platforms.

Meta's platforms, including Facebook, Instagram, and WhatsApp, expose users to an estimated 15 billion scam ads daily. While the company employs a system that flags advertisers with a 95% likelihood of fraud, it has been criticized for its slow response and reliance on charging scammers higher ad rates as a deterrent.

With regulators increasing pressure to address the rampant fraud, Meta's internal strategies reveal plans to cut revenue from scams and illicit activities by the end of 2027. However, the tech giant faces the challenge of balancing its enforcement efforts with potential financial repercussions from regulatory fines and lost revenue.