Meta Ignored Scam Ads

Benzinga

Reuters reports Meta knew Chinese advertisers were running scams across its platforms but failed to act, allowing billions in ad revenue to continue. Internal documents suggest scam-linked ads made up a significant share of 2024 revenue.

Transcript

00:00It's Benzinga, bringing Wall Street to Main Street.

00:03Meta platforms had knowledge of fraudulent practices by its Chinese advertisers but

00:07failed to act, allowing the company to keep generating billions of dollars in ad revenue.

00:13According to a Reuters report, Meta knew Chinese advertisers were defrauding users across Facebook,

00:18Instagram, and WhatsApp, but did not take substantial action to stop it.

00:22Internal documents showed that in 2024, about 19% of Meta's $18 billion in China revenue came

00:29from ads tied to scams, illegal gambling, and pornography.

00:34Meta created an anti-fraud team that cut problematic ads in late 2024.

00:38But after CEO Mark Zuckerberg intervened and the team was disbanded, restrictions were lifted

00:43and banned ads rebounded.

00:45Meta did not immediately respond to Benzinga's request for comment.

00:48Leaked internal documents showed Meta projected about $16 billion in 2024 revenue from scam

00:54ads and banned goods, representing nearly 10% of its total revenue.

00:58Meta shares rose 0.59% Monday to close at $647.51, lifting the stock 8.06% year to date.

01:07For all things money, visit Benzinga.com.

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