Report Claims Meta Could Earn Billions From Scam Promotions

Meta is again under fire in Malaysia after a Reuters investigation suggested the tech giant may be profiting from scam promotions, including illegal gambling and investment ads. The report estimated that Meta could be earning up to 10% of its total revenue — between $7 billion and $16 billion — from deceptive content running across Facebook, Instagram, and WhatsApp.

Good to Know

• Malaysian regulators accuse Meta of failing to remove illegal gambling ads despite repeated government requests.
• Meta disputes the allegations, calling the report “distorted.”
• Reuters’ analysis of internal documents suggests scam-related revenue remains a global issue for the company.

The Malaysian Communications and Multimedia Commission (MCMC) labeled the findings “deeply troubling.” Commissioner Derek Fernandez said the report raised “grave concern” about how Meta handles scams and illegal promotions targeting Malaysian users.

Since January, Malaysia has required any social media or messaging service with over eight million registered users to obtain a local license to operate. Non-compliance carries fines reaching $118,500 and potential jail terms of up to five years.

Meta, however, has taken a firm stance on its autonomy. Meta’s Director of Public Policy Rafael Frankel said: “We don’t need any licence to continue that work,” emphasizing that the company already enforces its own moderation policies regardless of local licensing regimes.

Malaysian authorities say otherwise. They claim citizens lost nearly $60 million to scams promoted through Meta platforms between 2023 and mid-2025. In the first eight months of this year alone, more than 168,000 requests were submitted to Meta to remove illegal gambling content — most of them connected to online casinos.

“These figures show Meta has not fully cooperated in combatting cybercrime, leaving room for offences to continue,” said Communications Minister Datuk Fahmi Fadzil.

What Meta Allegedly Does

According to Reuters, Meta’s internal processes delay enforcement against scam advertisers until its system reaches 95% certainty that a product or service violates policy. In some cases, suspected fraudulent advertisers are charged higher ad rates instead of being banned outright.

The investigation also found Meta’s algorithms tend to target scam content toward users most likely to engage with it — meaning that individuals who click on one fake investment or casino ad often see similar ones soon after.

Meta spokesperson Andy Stone pushed back, saying Reuters took “a selective view that distorts Meta’s approach to fraud and scams.”

Push for Accountability and Regulation

Regulators argue Meta’s profit-driven ad structure mirrors what banks would face if they knowingly processed fraudulent transactions. Fraud consultant Sandeep Abraham, a former Meta investigator, told Reuters: “If regulators wouldn’t tolerate banks profiting from fraud, they shouldn’t tolerate it in tech.”

Fernandez has proposed that Malaysia introduce a “public safety and online-harm rating system” for digital platforms, grading their transparency and cooperation with authorities.

The MCMC has also criticized Meta for failing to stop credit cards from being used to pay for illegal ads. “If a gambling ad is paid for using a credit card and Facebook knows this content is illegal in Malaysia, they should block the account. But Facebook has refused to do so,” said Fadzil.

FAQ

What triggered Malaysia’s renewed criticism of Meta?

A Reuters report suggesting Meta earned billions from scam ads, including illegal gambling and investment promotions.

How much could Meta be making from these ads?

The report estimates between $7 billion and $16 billion — roughly up to 10% of Meta’s total revenue.

What actions has Malaysia taken so far?

The country introduced licensing requirements for large digital platforms and has sent over 168,000 removal requests for illegal gambling content this year.

How has Meta responded?

The company denies the claims, saying Reuters misrepresented its internal policies and commitment to combat fraud.

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