A Reuters probe found some troubling information. It turns out Meta may have made $16 billion from fraudulent ads. Maile revenues from scam ads run on Meta platforms appearing as legal gambling, fake investments, and solicitations for products prohibited by Meta.
Internal company documents indicate a projection, wherein Meta thought about 10% of its 2023 revenue would come from scammy advertisements. The company was fully aware that these advertisements were a user risk, but reportedly was planning on this revenue anyway.
Meta has an internal algorithm that assigns a fraud score to an advertiser based on the probability of fraud. The algorithm identifies potentially fraudulent accounts and ascribes a likelihood that they are scamming users. The algorithm can also flag seemingly suspicious activity or ads of the advertiser.
Meta’s only criteria for blocking an advertiser is a 95% certainty. Meta requires near-proof of fraud for any takedown of an account. In fact they scarcely remove accounts that exhibit suspicious behavior. This is a massive loophole whereby all three possibly categorizations of ads and accounts can continue under these policies – this is also why many scam ads ran.
Meta actually charges a higher fee for probable scams (probability scores from about 80-90% inclusive.). Meta presumably opts for this strategy to withhold and deter bad actors in spending with Meta. However, scammers often tend to just pay the additional fees. Therefore this action directly resulted in profits for Meta.
The problem continued for three years. Meta allegedly failed to protect users adequately. Fake investment schemes flourished on platforms. Illegal gambling ads reached millions. Banned medical products were widely promoted.
Scammers often mimic legitimate brands. They copy government agency logos. They target elderly users specifically. Fraudsters exploit financially insecure people. They use AI-generated faces and cloned voices.
A company spokesperson criticized the report. He called the documents selective and misleading and highlighted the company’s anti-fraud efforts. He noted a 58% drop in user reports and mentioned removing 134 million scam ads.
Platforms can profit from suspicious advertisers. This creates weaker incentives to fight fraud. User safety may become secondary to revenue. The findings raise serious questions for billions. People wonder if their feeds are truly safe.
Scam ads remain a massive threat. AI technology makes deception easier. Fake celebrity endorsements are common. Cloned voices trick victims effectively. Social media platforms face growing challenges.
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