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Read Full BioA report has alleged that Meta CEO Mark Zuckerberg personally intervened to allow Chinese companies to continue advertising scams, including illegal gambling, on its platforms.
Meta had reportedly set up a Chinese anti-scam team focused on reducing the presence of adverts for scams, illegal gambling, and other banned products.
The team was having success and had been able to reduce the amount of revenue coming from problematic ads from 19% to 9% of the total advertising revenue coming from China.
However, a Reuters investigation claims that internal documents show Zuckerberg intervened, and the anti-scam team was disbanded.
An internal document allegedly noted that, “As a result of Integrity Strategy pivot and follow-up from Zuck,” the China ads-enforcement team was “asked to pause” its work.
Details of Zuckerberg’s level of involvement have not been revealed. But, Reuters notes that in the following months, revenue coming from scams, illegal gambling, and other banned products climbed again. It notes that, “By mid-2025, banned ads climbed back to about 16% of Meta’s China revenue.”
Meta spokesperson Andy Stone denied that Zuckerberg ordered the team to stop its efforts to reduce the problematic ads coming from China. He said that Zuckerberg’s order to teams working on scams and other high-risk harms “was to redouble efforts to reduce them all across the globe, including in China.”
Meta Allegedly Generates Billions From Illegal Businesses
Reuters previously accused Meta of generating as much as 10% of overall revenue from adverts for scams, illegal gambling, and banned products. This equated to around $16 billion.
A Meta spokesperson admitted that the company had estimated this figure, but upon review, found that many of the businesses were, in fact, legitimate.
The spokesperson stated, “This number was a rough and overly-inclusive estimate rather than a definitive or final figure; in fact, subsequent review revealed that many of these ads weren’t violating at all. The assessment was done to validate our planned integrity investments – including in combating frauds and scams – which we did.”
Reuters claims that there is a limit on how much revenue the company is willing to sacrifice in combating illegal ads. Another internal document said that anti-scam efforts should not cost Meta more than 0.15% of total revenue. That works out to about $270 million per year.
Former Director: Scale of Predatory Ads ‘Not Defensible’
Rob Leathern, senior director of product management at Facebook until 2020, said the scale of predatory advertising on Meta’s platforms is “not defensible.”
“The levels that you’re talking about are not defensible,” he said of the percentage of abusive ads. “I don’t know how anyone could think this is okay.”
While China bans Meta’s platforms, including Facebook, WhatsApp, and Instagram, a report commissioned by Meta from London consultancy Propellerfish stated, “The Chinese government does not interfere when violations target overseas audiences.”
Earlier this year, the U.S. Federal Bureau of Investigation seized $214 million generated by a Chinese stock scam advertised through Facebook and Instagram.
Prosecutors said the scheme, known as a “pump-and-dump,” allegedly involved individuals in China posing as U.S.-based investment advisors on social media and messaging platforms and falsely promising significant returns from investments in the company.
Fake Casinos & Gambling Companies Target Users
Another identified scam advertised a fake Amazon casino on Facebook and Instagram. The ads featured Jeff Bezos’ image to claim that Amazon Slots was endorsed by the billionaire businessman.
Stone claimed that Meta is committed to rooting out scams, but faces an uphill battle. He stated, “Scams are spiking across the internet, driven by persistent criminals and sophisticated, organized crime syndicates constantly evolving their schemes to evade detection.”
“We are focused on rooting them out by using advanced technical measures and new tools, disrupting criminal scam networks, working with industry partners and law enforcement, and raising awareness on our platform.”
Ad Agencies Actively Assist Scammers
However, Reuters journalist Jeff Horwitz stated that Meta not only is aware of scam ads but also fails to prevent them, and actively helps scammers increase their presence on its platforms.
Horwitz set up his own ads, promising to give investors a 14,000% annual return on their money. The fake business venture appeared in the feeds of 20,000 users in the US, Europe, India, and Brazil in November last year.
The ads were run through agencies listed publicly by Meta in its official “Partner Directory.” Horwitz says several Chinese and other ad agencies based in Asia are helping businesses run scams on the platforms. The agencies claim to know how to circumvent Facebook and Instagram rules.
One agency based in Vietnam, Bluefocus, even has a tutorial titled, “How to Advertise Illegal Products on Facebook.”
After Reuters presented Meta with evidence that the social media company had granted “Badged Partners” status to agencies that explicitly offered to break its advertising rules, Meta deleted its partner directory and stated that it would put some of those partners and the program itself under review.
