San Francisco: Meta is facing renewed scrutiny after an investigative report revealed that the company allowed widespread fraudulent advertising linked to China to continue on its platforms in order to protect billions of dollars in revenue.
The report found that advertisers connected to China generated more than 18 billion dollars in advertising revenue for Meta in 2024, accounting for over ten percent of the company’s total ad income. A significant share of this revenue was linked to scam ads, illegal gambling promotions, fake investment schemes and other content that violated the company’s own advertising rules.
Internal data cited in the investigation showed that nearly one fifth of the China related advertising revenue came from ads that should not have been allowed on the platform. These ads appeared mainly on Facebook and Instagram and often targeted users outside China, exposing millions of people worldwide to financial fraud and deception.
The investigation revealed that Meta had earlier launched a focused internal effort to crack down on fraudulent ads from China. During this period, the number of such ads reportedly dropped sharply. However, the enforcement drive was later scaled back, and the specialised team handling China related ad fraud was disbanded.
According to sources familiar with the issue, concerns about revenue loss played a major role in the decision to ease enforcement. Senior leadership was informed that stricter action against these advertisers would significantly affect advertising income.
The report also highlighted the role of advertising resellers in China. Meta relied on a small number of large partners who worked with many smaller agencies, creating a complex structure that made monitoring difficult. Some agencies allegedly provided access to accounts that could bypass automated checks, allowing prohibited ads to run longer than expected.
In a test carried out as part of the investigation, scam advertisements were approved and published through agencies listed as trusted partners, even though they clearly violated advertising policies. Following the report, Meta removed its public list of trusted ad partners and said it is reviewing the programme.
In response, Meta said it removes millions of fraudulent ads each year and that automated systems block many ads before users see them. The company said it continues to invest heavily in safety measures and cooperates with law enforcement to disrupt scam networks.
The findings have triggered calls for closer regulatory scrutiny in the United States. Lawmakers are urging authorities to examine whether the company has been transparent about the scale of scam related revenue and whether stronger protections are needed for users.
Consumer groups say the report exposes a deeper conflict between profit and platform safety. They warn that without tougher oversight, online scam advertising will continue to cause serious financial harm to users across the world.
The investigation adds pressure on Meta and other major technology companies as governments consider stricter rules to hold platforms accountable for harmful advertising practices that generate significant profits.