Meta's Scam Ad Problem Just Got Congressional Attention—And The Numbers Are Brutal

Two US senators just dropped a bombshell: Meta could be pocketing roughly $16 billion annually from ads tied to scams and banned products. That’s about 10% of the company’s 2024 revenue.

Here’s what the leaked internal documents reveal:

• Meta itself estimated that a third of all US scams involve its platforms (Facebook/Instagram)
• The company makes around $3.5 billion every six months specifically from “higher risk” scam ads
• Many fraudulent ads are bypassing Meta’s own safety filters

Senators Josh Hawley and Richard Blumenthal have now formally asked the FTC and SEC to investigate. They’re pushing for penalties including forced profit disgorgement and stricter oversight.

The catch? Meta claims it’s actually winning: scam reports have dropped 58% in the past 18 months. But the senators fired back, pointing to Meta’s own ad library where you can still easily find fake gambling promotions, crypto fraud schemes, deepfake sex services, and bogus benefit offers.

The real kicker—many of these scams are traced back to overseas cybercrime groups. Despite pouring billions into AI, Meta’s safety team has been slashed, allowing fraudulent content to slip through.

Context: Americans lost over $158 billion to scams last year according to FTC estimates. If even a fraction traces back to Meta’s platforms, the regulatory heat will only intensify.

Stock move: META closed at $613.05 (+3.16%), seemingly unfazed by the headlines.