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Leaked Docs Reveal Meta Cashing In on a ‘Deluge’ of Fraudulent Ads

Meta anticipated earning about 10% of its total annual revenue, or $16 billion, from advertising for scams and banned items, according to internal documents reviewed by Reuters. The documents reveal that for at least three years, the company failed to stop a significant number of ads exposing its billions of users on Facebook, Instagram, and WhatsApp to fraudulent schemes, illegal casinos, and banned medical products. On average, around 15 billion “higher risk” scam ads, showing clear signs of fraud, were displayed daily on these platforms. Meta reportedly generates about $7 billion annually from these scam ads.

Many of these ads were linked to marketers flagged by Meta’s internal systems. However, the company only bans advertisers if fraud is at least 95% certain according to its systems. If less certain but still suspect, Meta imposes higher ad rates as a penalty instead of outright banning them. This approach aims to deter dubious advertisers without fully eliminating them. The company’s ad-personalization system also ensures that users who click on scam ads see more of them based on their interests.

The documents create an image of Meta grappling with the extent of abuse on its platforms while hesitating to take stronger actions that could impact its revenue. The acceptance of revenue from suspicious sources highlights a lack of oversight in the advertising industry, as noted by fraud expert Sandeep Abraham. Meta’s spokesperson, Andy Stone, counters that the documents provide a biased view and argues that the actual share of revenue from scam ads would be lower than estimated. He claimed the plan aimed to validate investments in combating fraud.

Stone mentioned that Meta has significantly reduced user reports of scam ads globally and removed millions of scam ad content in recent efforts. The company aims for major reductions in scam ads in the upcoming year. Despite this, internal research indicates that Meta’s platforms are central to the global fraud economy, with one presentation estimating they contribute to a third of all successful fraud in the U. S. Competitors were noted to have better systems to combat fraud.

As regulators step up pressure for stronger consumer protections, the documents reveal the U. S. Securities and Exchange Commission is investigating Meta for financial scam ads. In Britain, regulators identified Meta as the source of over half of the payment-related scam losses in 2023. The company has acknowledged that addressing illicit advertising may hurt its revenue.

Meta is investing heavily in technology and has plans for extensive capital expenditures in AI. CEO Mark Zuckerberg reassured investors that their advertising revenue can support these projects. The internal documents suggest a careful consideration of the financial impact of increasing measures against scam ads, indicating that while the company intends to reduce illicit revenue, it is wary of the potential business implications.

Despite planning to diminish scam ads’ revenue share, Meta is bracing for regulatory fines, estimating penalties that could reach up to $1 billion. However, these fines are viewed as comparatively minor against the income from scam ads, which already generates significant revenue. The leadership’s strategy shows a tendency to react to regulatory pressure rather than implementing proactive measures to vet advertisers effectively. Stone disputed claims that Meta’s policy is to act only under regulatory threat.

Meta has set limits on how much revenue it can afford to lose from actions against suspect advertisers. In early 2025, a document revealed that the team reviewing questionable ads was restricted to a loss of no more than 0.15% of company revenue, which equated to around $135 million from Meta’s total of $90 billion in the same period. A manager noted that this revenue cap included both scam ads and harmless ads that might be mistakenly blocked, indicating strict financial boundaries in their approach.

Under increasing pressure to manage scams more effectively, Meta’s executives proposed a moderate strategy to CEO Mark Zuckerberg in October 2024. Instead of a drastic approach, they suggested targeting countries where they anticipated regulatory action. Their goal was to reduce the revenue lost to scams, illegal gambling, and prohibited goods from approximately 10.1% in 2024 to 7.3% by the end of 2025, with further reductions planned for subsequent years.

A surge in online fraud was noted in 2022, when Meta uncovered a network of accounts pretending to be U. S. military members trying to scam Facebook users. Other scams, such as sextortion, were also rising. Yet, at that time, Meta invested little in automated systems to detect such scams and categorized them as a low-priority issue. Internal documents showed efforts were mainly focused on fraudsters impersonating celebrities, which threatened to alienate advertisers and users alike. However, layoffs at Meta affected the enforcement team, as many working on advertiser rights were let go, and resources shifted heavily toward virtual reality and AI projects.

Despite layoffs, Meta claimed to have increased its staff handling scam advertising. However, data from 2023 revealed that Meta was ignoring about 96% of valid scam reports filed by users, suggesting a significant gap in their response to customer concerns. The safety staff aimed to improve this by reducing the number of dismissed reports to no more than 75% in the future.

Instances of user frustration were evident, such as a recruiter for the Royal Canadian Air Force who lost access to her account after being hacked. Despite multiple reports to Meta, her account remained active, even sharing false cryptocurrency investment opportunities that defrauded her connections. Reports indicated that she had many people flag her account, but it took about a month before Meta finally removed it.

Meta refers to scams that do not involve paid ads as “organic,” which include free classified ads, fake dating profiles, and fraudulent medical claims. A report from December 2024 stated that users face approximately 22 billion organic scam attempts each day, alongside 15 billion scam ads, highlighting the company’s ongoing struggle to manage fraud effectively. Internal documents suggest that Meta’s efforts to police fraud are not capturing much of the scam activity occurring across its platforms.

In Singapore, police shared a list of 146 scams targeting local users, but Meta staff found that only 23% of these scams broke the platform’s policies. The remaining 77% went against the spirit of the rules but not the exact wording. Examples of unchecked scams included fake offers on designer clothes, false concert tickets, and job ads pretending to be from major tech firms. In one case, Meta discovered scam ads claiming to belong to the Canadian prime minister, yet the existing rules wouldn’t flag the account.

Even when advertisers are found to be scamming, the rules can be lenient. Small advertisers need to be flagged for scams eight times before being blocked, while larger ones can have over 500 complaints without being shut down. Some scams generated significant revenue; for example, four removed ads were linked to $67 million monthly.

An employee initiated reports highlighting the “Scammiest Scammer” each week to raise awareness, but some flagged accounts remained active for months. Meta tried to deter scammers by charging them more in ad auctions, labeling this practice “penalty bids. ” Advertisers suspected of fraud would have to bid higher amounts, thus reducing competition for legitimate advertisers. Meta aimed to decrease scam ads from this approach, which showed some success, resulting in fewer scam reports and a slight dip in overall ad revenue.

With information from Reuters

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Government urged to replace annual BBC TV licence fee with ads before price rise

The annual TV licence fee is set to rise in April 2026

Calls have been made to scrap the BBC TV licence fee and introduce either advertising or a paywall system before the annual price increase in April. A new online petition has urged the Government to make changes to the TV licence system.

The current fee stands at £174.50 and households must pay this if they watch or record live television, or face potential fines. This charge usually increases alongside September’s Consumer Price Index (CPI) inflation rate, which reached 3.8 per cent.

Such a rise would push the licence fee up by £6.65 to £181.15 for the 2026/27 financial year. The Daily Record reports that this isn’t guaranteed and awaits confirmation from the UK Government later this month, typically around the Autumn Budget on November 26.

From April 1, 2024, the UK Government determined the licence fee would increase annually with CPI inflation for the Charter period’s remaining four years. The BBC’s current Charter continues until the end of 2027.

Campaigner David Gilmore contends that “even if you don’t watch the BBC you still have to pay for it”. He continued: “You don’t have to pay for content put on by theatres or cinemas if you don’t watch it so why should you be required to pay the BBC if you don’t watch their content?”

The petition titled “Scrap the BBC TV licence and replace funding with adverts or paywall” appears on the UK Government’s petitions-parliament website. At the time of reporting, it had over 1,300 signatures.

The petition needs 10,000 signatures to receive a written response and at 100,000 signatures, it would be considered for debate in Parliament. The petition can be viewed online here.

Other calls to change the TV licence

Over 15,200 people have signed a similar petition, urging the UK Government to cover the TV licence fee for all State Pensioners and those who reach the current official retirement age of 66. As per the current rules, only those over the age of 75 who are receiving Pension Credit are entitled to a free TV licence, saving them £174.50 on the annual fee.

Michael Thompson, the creator of the petition, argues that “many pensioners live on the breadline with only the TV for company”.

He further stated: “With the cost of food soaring and utility bills ever higher, we feel there is a desperate need to provide all pensioners with at least this concession.”

Mr Thompson added: “We feel it is a double outrage that those who have given their all to this country in taxes and raising children have to pay a TV licence fee and are only exempt if they receive means-tested Pension Credit. Meanwhile, some media figures draw huge salaries.”

The “Fund free TV licences for all pensioners” petition can also be seen on the UK Government’s petitions-parliament website.

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ICE ads are streaming near you. So is the online rebellion

There you are, sitting in traffic in your car, listening to Taylor Swift on Spotify because it’s easier than subjecting yourself to a new, more challenging artist. An ad pops up in your stream. It’s serious stuff, evidenced by the dystopian tone of the narrator: “Join the mission to protect America,” the serious man’s voice commands, “with bonuses up to $50,000 and generous benefits. Apply now … and fulfill your mission.”

It’s an Immigration and Customs Enforcement recruitment ad, part of the Trump administration’s investment of $30 billion to add more than 10,000 deportation officers to its ranks by the end of the year. You would have been spared the outrage if only you had paid for Spotify’s ad-free tier of service, but there’s no way the audio streamer is getting your money now. You’ll be switching to, say, Apple Music. Maybe Tidal?

The experience of being subjected to recruitment ads for a domestic military force, assembled by a power-hungry president, has generated intense backlash that’s culminated this week in calls for boycotts of streaming services and platforms that have featured ICE spots. They include Pandora, ESPN, YouTube, Hulu and Fubo TV. Multiple HBO Max subscribers bemoaned on X that they were subjected to ICE recruitment videos while watching All Elite Wrestling: “Time to be force-fed ICE commercials against my will for two hours again #WWENXT,” @YKWrestling wrote.

Recruitment ads — Uncle Sam’s “I Want You” poster comes to mind — are an American staple, especially in times of war. But the current recruitment effort is aimed at sending forces into American cities, predicated on exaggerated claims that U.S. metro areas are under siege and in peril due to dangerous illegal immigrants, leftist protesters and out-of-control crime rates. The data, however, does not support those claims. The American Immigration Council found that from 1980 to 2022, while the immigrant share of the U.S. population more than doubled (from 6.2% to 13.9%), the total crime rate declined by over 60%.

Yet there’s a far scarier doomscape on the horizon if ICE’s recruitment efforts are successful: a mercenary army loyal only to Trump, weaponized to keep him on the throne. If that sounds more dystopian than the aforementioned Spotify ad, consider that the administration has spent more than $6.5 million over the past month on a slew of 30-second commercials aimed at luring in police officers.

The ads aired on TVs in more than a dozen cities including Chicago, Seattle and Atlanta and opened with images of each specific metro area’s skyline. Then came the commanding narration: “Attention, Miami law enforcement!” It’s followed by the same messaging that is used in ICE ads across the country: “You took an oath to protect and serve, to keep your family, your city, safe. But in sanctuary cities you’re ordered to stand down while dangerous illegals walk free — Join ICE and help us catch the worst of the worst. Drug traffickers. Gang members. Predators.”

But are the ads working? It’s hard to say since transparency isn’t a hallmark of the MAGA White House. For what it’s worth, a Sept. 16 press release from the DHS claimed that it had received more than 150,000 applications in response to its campaign and had extended 18,000 tentative job offers.

As for the power of consumer-led boycotts, there’s hope. More than 1.7 million Disney, Hulu and ESPN subscriptions were reportedly canceled between Sept. 17 and Sept. 23 during Jimmy Kimmel’s temporary suspension by ABC (Disney is ABC’s parent company). The network pulled the show after the host’s comments related to Charlie Kirk’s assassination angered MAGA supporters and the Trump-appointed FCC chair appeared to threaten the network. But after a week with a significant increase in cancellations — a 436% jump compared to a normal week — Kimmel was back on the air.

As of today, Spotify appears unmoved by the pressure to pull those intrusive ICE ads. “This advertisement is part of a broad campaign the US government is running across television, streaming, and online channels,” a Spotify spokesperson said in a statement this week. “The content does not violate our advertising policies. However, users can mark any ad with a thumbs up or thumbs down to help manage their ads preferences.”

Thumbs down. Frowny emoji. Cue the dystopian narrator for a counter ad: “Join the mission to protect America: Cancel Spotify.”



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Firm finds five best political ads of a really bad lot

Ubiquitous and almost uniformly dull, the year of dispiriting political advertising seems like it just won’t end. It’s not just voters who get tired of what’s turning up on TV.

A firm that tracks campaign ads finds “a painful proportion of them are all the same” — but plucks out five ads that is says are exceptions to the dull norm. That’s five offbeat, attention-grabbing ads that Kantar Media CMAG selected out of more than 6,000 that have aired this year — from local races all the way up to the scrum for the White House.

“These ads stand out because they’re unusually creative, personal or authentic,” said an article by Kantar Vice President Elizabeth Wilner for Ad Age.

That doesn’t mean they are particularly uplifting or nice. Just memorable. Among the ads singled out by Wilner:

–Rep. Allen West’s spot, comparing his preparations to deploy to Iraq in 2003 to the activities about that time of his Democratic opponent, who got arrested in a bar brawl. Even Democratic activists who loathed the content of the ad said it helped the Florida GOP lawmaker open up a lead over his opponent, Patrick Murphy.

–South Dakota U.S. Rep. Kristi Noem let her grandmother do the talking to describe the congresswoman’s position on Medicare and President Obama’s healthcare law. The result was a lot more engaging than it might sound.

–Alaska state Sen. Bettye Davis described her recipe for politics by mixing up a pot of gumbo like they do in her native Louisiana.

–U.S. Sen. Claire McCaskill, the Missouri Democrat, doesn’t want voters in that state to forget how her opponent, Rep. Todd Akin, talked about women’s bodies being able to somehow ward off pregnancy after “legitimate rape.” Her ad features an antiabortion Republican “and rape survivor” saying that Akin’s backward views and the possible “criminalizing” of abortion had her turning to McCaskill.

–An ad from conservative advocacy group Crossroads GPS went after Democratic U.S. Sen. Sherrod Brown of Ohio by mimicking the DirecTV ads—the ones that show consumers falling into dire straits because of their allegiance to cable TV. (“Don’t reenact scenes from ‘Platoon’ with Charlie Sheen.”) The spot captures some of the glow of the amusing DirectTV campaign.

[email protected]

Twitter: @latimesrainey



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Premier League gambling: Betting ads undermine reduction pledge

“This level of gambling advertising during the Premier League’s first weekend is frankly astonishing,” said Sir Iain Duncan Smith MP, chair of the Gambling Reform All Party Parliamentary Group.

“The industry claimed it was taking steps to self-regulate and reduce advertising, but yet again they have not kept to their word. The whistle-to-whistle ban is far too limited and is ineffective.”

Overall, there were 27,440 gambling messages measured across the entire opening weekend, a slight decrease from last year but still more than triple the tally from 2023.

The total is found by adding together every individual instance of gambling messaging from live match coverage, plus output on TalkSport, Sky Sports News and some social media channels.

There have been growing calls for a ban on gambling advertising, akin to the 2002 ban on tobacco promotion, and in 2023 the Gambling Commission recommended the government should limit the amount and frequency of gambling ads promoted within elite sports venues.

Lord Foster of Bath, chair of Peers for Gambling Reform, said: “The government must simply step in to reduce people’s and particularly children’s exposure to gambling advertising that we know can lead to harm. The government has all the powers it needs to protect people and it must do so now.”

A spokesperson for the Department of Culture, Media and Sport told the BBC: “The government recognises that more work needs to be done to ensure that gambling advertising is appropriate, responsible, and does not exacerbate harm.

“We are consulting a wide range of evidence to inform our next steps in this space and working with industry to further raise standards.”

The Premier League did not provide a comment.

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