A Reuters investigation has revealed that Meta knowingly tolerated large-scale advertising fraud of widespread scams targeting global users.
Internal company documents show Meta determined in 2024 that nearly 19% of its China ad revenue, over $3 billion, came from fraudulent or banned ads, including scams, illegal gambling, and pornography. Despite efforts by Meta’s safety division to curb the problem, the company scaled back enforcement after CEO Mark Zuckerberg intervened, citing concerns about “revenue impact.”
Following Zuckerberg’s direction, Meta disbanded its China anti-fraud team, lifted restrictions on new Chinese ad partners, and shelved planned safety measures, the documents show. By mid-2025, fraudulent ads from China surged again, accounting for 16% of Meta’s China revenue.
“The levels you’re talking about are not defensible,” said Rob Leathern, a former Meta executive overseeing ad integrity. “I don’t know how anyone could think this is okay.”
Meta’s spokesperson Andy Stone told Reuters that the China anti-fraud team was “temporary” and that the company continues to fight scams globally, blocking 46 million fraudulent ads from Chinese partners in the last 18 months.
Still, consultants hired by Meta concluded that its own practices were “fostering systemic corruption” in the Chinese ad market, where lax oversight allows scammers to operate with “little or no risk.”
Meta earned $18.4 billion from China in 2024, about 11% of its global revenue, making the country both one of its most lucrative and most problematic ad markets.
Despite repeated internal warnings about consumer harm, one document summed up Meta’s stance bluntly:
“We are seeing harm… but the revenue impact is too high.”
