Meta Estimates That It Earns 10% Of Its Revenue From Scams, Report Says

In Brief

Last year, Meta projected that 10% of its wide yearly gross — $16 cardinal — would travel from fraudulent advertisements connected its apps, according to a report from Reuters.

The documents accessed by Reuters besides show that for 3 years, Meta grounded to protect its users from ads promoting forbidden gambling, finance schemes, and banned aesculapian products. These fraudulent ads purport to connection a merchandise aliases work that isn’t really real, and whitethorn beryllium intended to solicit payments from little savvy users.

Image Credits:Facebook (Screenshot by Reuters)

Meta has a strategy for detecting nan likelihood that an advertizing run is simply a scam, but nan institution only deactivates an advertiser’s relationship if it is 95% judge that nan advertiser is committing fraud. Otherwise, Meta will complaint much money from advertisers that it suspects whitethorn beryllium doing fraud arsenic a measurement to discourage them from buying much advertizing — but erstwhile those advertisers travel done anyway, it pads Meta’s bottommost line.

TechCrunch contacted Meta for comment, but did not perceive backmost earlier publication. Per Reuters’ report, Meta spokesperson Andy Stone claimed that nan documents Reuters utilized “present a selective position that distorts Meta’s attack to fraud and scams.”

Stone added that complete nan past 18 months, Meta has reduced personification reports of scam ads by 58%, and nan institution has removed complete 134 cardinal scam ads from its platforms.

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