The problem of fraudulent ads, gambling and content that can be labeled as illegal is nothing new if you have been using the social media platform for a long time. Each platform owner often says that they are redoubled their efforts to actively block. But according to a Reuters report this morning, Meta is aware that they generate high revenue from fraudulent ads but are not serious about combating them.
Documents seen by Reuters found that Meta generated $18 billion (~RM 74 billion) in 2024 in China through advertising on Facebook, Instagram and WhatsApp. Of this amount, Meta estimates that around $3 billion (~RM 12 billion) was generated through advertisements for fraud, illegal gambling, pornography and other banned content.
Examples of fraudulent ads on Facebook using local celebrities
In Meta's own investigation, around 25% of scam ads and banned products originated in China. A special team was formed to reduce the impact of these ads on users. But then the Chinese ad enforcement team was “requested to temporarily suspend” its work.
Meta subsequently disbanded its China-focused anti-fraud team. It also lifted a freeze on new Chinese ad agencies from accessing its platform. In another document, Meta suspended new anti-fraud measures that had been shown to be effective in internal testing.
In a statement to Reuters, Meta said the task force, which had been tasked with combating fraud from China since its inception, was set up for a short period of time. It also denied claims that Zuckerberg had ordered its disbandment, but instead asked the anti-fraud team to redouble its efforts globally and not just in China.
We have published several reports on fraudulent ads on Facebook using the faces of popular celebrities such as Khairul Aming and MrBeast. Last month, the MCMC said it would summon Meta representatives to provide an official explanation regarding a report that 10% of Meta’s ad revenue was through fraud.