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Scam ads on Meta: what the scrutiny means for legitimate advertisers

In November 2025, Reuters reported that internal Meta documents projected about 10% of the company's 2024 revenue would come from ads for scams and banned goods. Meta disputes that figure and says it removed more than 159 million scam ads in 2025. For an honest advertiser the practical result is more identity checks: Meta said in March 2026 that it wants verified advertisers to account for 90% of its ad revenue by the end of 2026.

Last updated 9 October 2026

What Reuters reported, and what Meta said

We could not open the Reuters article itself, so this account relies on two outlets that summarised it: TechCrunch on 6 November 2025 and Marketing Brew on 10 November 2025. Both describe a Reuters investigation, published on 6 November 2025, based on internal Meta documents. Everything in the left-hand column below is what those outlets say the documents contained. They are internal estimates and projections, not audited figures.

What was reported from Meta's internal documents, and Meta's response
Reported from the documents	What Meta said
Meta projected that about 10% of its 2024 revenue, roughly $16 billion, would come from ads for scams and banned goods (TechCrunch, Marketing Brew).	A spokesperson told Marketing Brew the figure was a rough estimate that took in too much.
The documents estimated that users were shown about 15 billion higher-risk scam ads a day on average, and that those ads brought in about $7 billion a year (Marketing Brew).	Meta said the documents give a selective picture of its approach to fraud and scams (TechCrunch, Marketing Brew).
Meta's automated systems banned an advertiser only when they were at least 95% sure of fraud. Suspected advertisers below that level were charged higher ad rates instead (TechCrunch, Marketing Brew).	Meta said user reports of scam ads had fallen 58% over 18 months and that it had removed more than 134 million scam ads in 2025 to that point (TechCrunch).

On the 10% figure, Meta spokesperson Matthew Tye told Marketing Brew it was "a rough and overly-inclusive estimate". Neither outlet reports Meta giving a revised number.

Meta set out its own position in a newsroom post on 3 December 2025. It said scams damage trust in its advertising business, that it had removed more than 134 million scam ads so far that year, and that reports about scam ads had fallen by more than half over 15 months. It also said it was expanding identity checks for advertisers, starting with higher-risk areas such as financial investment ads.

What followed, in date order

24 November 2025. US senators Richard Blumenthal and Josh Hawley published a letter asking the Federal Trade Commission and the Securities and Exchange Commission to investigate Meta and, if the reporting proved accurate, to seek penalties and the return of profits from fraudulent ads. The letter is a request. It cites the Reuters reporting and is not a finding by either agency.
29 December 2025. The US Virgin Islands Department of Justice announced a lawsuit against Meta in the Superior Court of the Virgin Islands. The complaint alleges that Meta knowingly profited from fraudulent advertising, and seeks an injunction, civil penalties and disgorgement. These are the territory's allegations, not findings by a court.
26 February 2026. Meta said it had filed four lawsuits against scam advertisers in Brazil, China and Vietnam, and sent cease-and-desist letters to eight former business partners.
11 March 2026. Meta announced new anti-scam measures. It said it removed more than 159 million scam ads in 2025, 92% of them before anyone reported them, and set a target for verified advertisers to produce 90% of ad revenue by the end of 2026, up from 70%.
April 2026. The Consumer Federation of America, a US non-profit, sued Meta, alleging it profited from scam ads in breach of consumer protection law, Social Media Today reported on 21 April 2026. The same report says Meta disputes the revenue figures the case relies on.

As of 9 October 2026 we found no public announcement from the FTC or the SEC of an investigation or enforcement action in response to the senators' letter. That is a statement about what we could find, not about what either agency is doing. This section is general information, not legal advice.

What this changes for an honest advertiser

Nothing in the reporting accuses ordinary advertisers of anything. The effect on them is indirect, and it comes from how Meta has chosen to respond: more verification, and enforcement that is largely automated.

Expect to be asked who you are. In its March 2026 post Meta said whether an advertiser must verify depends on where their ads are delivered, whether they have a history of breaking the rules, and whether their type of ad is prone to abuse. Meta's help page on advertiser and payer transparency lists similar factors, and names Australia, the European Union, India, Singapore, Taiwan, Thailand and Malaysia as places where local rules can require disclosure of who is behind and who pays for an ad.
Review is mostly automated, and it does not stop at approval. Meta's Advertising Standards say review relies mainly on automated tools, usually finishes within 24 hours, covers the landing page as well as the ad, and can be repeated after an ad is live.
Account behaviour counts, not only ad content. Meta's page about advertising restrictions says limits can follow unusual account or payment activity, a high rate of failed or disputed payments, a suspected hack, or not meeting its two-factor authentication requirements.

In practice that suggests tidy records matter more than they used to: a business portfolio in the right legal name, a working website, and a payment method that does not fail.

How business verification works

Meta's help page on verifying your business describes the process. It is done in Security Centre in Meta Business Suite, by someone with full control of the business portfolio.

Enter the legal business name, address, phone number and website. Meta says these should match your legal entity exactly, and the website must load over HTTPS.
If Meta finds no matching record, you may be asked to upload official documents such as a business licence or articles of incorporation.
Confirm your connection to the business by email, phone, text message, WhatsApp or domain verification.
A decision can take up to 14 working days. If you edit your business details afterwards, you have to verify again.
Not every portfolio can start the process. If Security Centre shows the portfolio as ineligible, Meta says no action is needed there unless it contacts you about a specific feature.

Rejected ads, restricted accounts and how to ask for a review

Meta's page on troubleshooting a rejected ad gives the reasons an ad may be rejected: it breaks the law where the advertiser is based, it discriminates, it uses deceptive or misleading practices meant to scam people, or the advertiser does not follow Meta's standards, policies and terms. Severe or repeated violations can lead to restrictions on the ad account, Page, business portfolio or the personal profile of the person advertising.

If you think Meta got it wrong, the same page sets out the steps for an ad.

01
Read the reason
Meta emails you when an ad is rejected, with a link to Meta Business Support Home where the reason is shown.
02
Decide whether to fix it or contest it
Editing the ad sends it back for review automatically. Do not delete it if you plan to contest the decision: Meta says deleting a rejected ad may cost you the ability to request a review.
03
Request the review
In Business Support Home, select the account, select the rejected ad, ad set or campaign, click Request review, then Submit. Meta says it aims to decide within 48 hours and that these re-reviews rely more on human reviewers.
04
Know that it is one attempt
If the ad is rejected again, you cannot ask for another review of the same ad. If the rejection is overturned, Meta says it does not count as a violation.

For a restricted account, Meta's page on requesting a review of an advertising restriction says an admin opens Account status overview in Business Support Home, selects the restricted account and chooses Request review. Meta says this typically takes 48 hours, that the number of requests is limited, and that ads running before the restriction are not restarted automatically if the account is reinstated.

If you are setting up your first campaign, our guide to publishing ads on Meta covers where review sits in the process.

How to report a scam ad, or an ad pretending to be your brand

Meta's help page on reporting an ad gives two routes, and says a report may trigger another review of the ad.

When you see it. In your feed, open Options next to the ad, choose Report ad and follow the instructions.
Later. Go to the Meta Ad Library, search for the advertiser's name or a keyword from the ad, open Options next to the ad and choose Report ad. Our Meta Ad Library guide explains how the search works.

Searching the Ad Library for your own brand name from time to time is a simple way to spot ads that use it without permission. For those, Meta has a separate tool. Brand Rights Protection lets a brand search for and report ads, Pages, accounts and posts for counterfeit, trademark or copyright infringement and business impersonation. Meta says you apply for access if you have a registered trademark, and that you need the IP reviewer role in Settings to see the tool. Businesses without access can use Meta's intellectual property report forms instead, which Meta's policy on third-party infringement also points to.

Using someone else's name or logo in your own ads is a quick route to a rejection for the same reason. Our guide to researching competitor ads legally sets out where that line is.

Sources

Questions people ask

Does Meta make 10% of its revenue from scam ads?

Reuters reported in November 2025 that internal Meta documents projected about 10% of 2024 revenue, roughly $16 billion, would come from ads for scams and banned goods. That is an internal projection, not an audited figure. A Meta spokesperson told Marketing Brew it was a rough, overly inclusive estimate, and Meta says it removed more than 159 million scam ads in 2025.

Do I have to verify my business to advertise on Meta?

Not always, but more advertisers are being asked. Meta said on 11 March 2026 that it wants verified advertisers to produce 90% of ad revenue by the end of 2026, up from 70%, and that the requirement depends on where ads are delivered, any history of rule-breaking and how prone the ad type is to abuse. Business verification is done in Security Centre in Meta Business Suite and can take up to 14 working days.

How do I report a scam ad or an ad impersonating my brand on Facebook or Instagram?

Open Options next to the ad in your feed and choose Report ad, or find the ad in the Meta Ad Library and report it from there. If the ad misuses your brand, Meta's Brand Rights Protection tool lets businesses with a registered trademark report ads for impersonation, counterfeit, trademark or copyright infringement; businesses without access can use Meta's intellectual property report forms.

What can I do if Meta rejects my ad or restricts my ad account by mistake?

Request a review in Meta Business Support Home. Meta says it aims to decide ad reviews within 48 hours, that you get one review per rejected ad, and that deleting the rejected ad may cost you the ability to request one. For a restricted account, an admin requests the review from Account status overview; the number of requests is limited.

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