Meta allegedly rakes in billions from scam ads in China as anti-fraud team gets shut down

Behind the glossy interface of Facebook and Instagram, millions of people fell prey to scams, illegal gambling, and pornography last year—while Meta quietly pocketed billions. According to a recent story from Reuters, Chinese advertisers alone contributed more than US$3 billion (S$3.87 million) in 2024, with nearly one in five dollars coming from content that broke the company’s own rules.

An internal team at Meta had started to fight back, flagging and removing the worst offenders, but their efforts hit a wall when CEO Mark Zuckerberg reportedly stepped in, dissolving the team. The outcome: Scam rates rebounded to 16% of China’s ad returns by the middle of 2025.

China’s influence on global scams is so pervasive that Meta allegedly tracks Chinese national holidays to predict when scams might rise or fall worldwide. During Golden Week, when hundreds of millions of people travel, scam activity temporarily dips—but only briefly.

Experts outside the company have criticised Meta’s approach. One consultancy told Reuters that enforcement is “inconsistent” compared to competitors, pointing out that platforms like TikTok enforce stricter rules. A Reuters test underscored the problem: Ads promising unrealistic investment returns ran freely, attracting dozens of interested users in just days.

The consequences are real. In March, the FBI seized US$214 million from a single Chinese stock scam that had targeted victims through Facebook and Instagram ads. Behind the numbers are everyday people—some losing life savings, others manipulated by schemes that continue unchecked while profits keep rolling in.