Meta Under Fire: US Senators Demand FTC/SEC Probe Over Billions in Scam Ad Revenue

Two influential US senators are escalating pressure on federal regulators to investigate Meta’s role in profiting from fraudulent advertising.

The Numbers Tell the Story

According to leaked internal documents obtained by Reuters, Meta may have earned approximately $16 billion in 2024 from ads linked to scams and banned products—roughly 10% of its annual revenue. Even more alarming: the company generates around $3.5 billion every six months specifically from “higher risk” scam advertisements alone.

Senators Josh Hawley (R-MO) and Richard Blumenthal (D-CT) have formally requested that the FTC and SEC investigate whether Meta knowingly allowed fraudulent content to proliferate on Facebook and Instagram. They’re calling for potential penalties including forced profit disgorgement and enhanced regulatory oversight.

What’s Actually Happening on the Platform?

Despite Meta’s claims that scam reports have dropped 58% in 18 months, the senators point to Meta’s own publicly available ad library as evidence the problem persists. They identified multiple fraud categories still running:

• Fake gambling promotions
• Cryptocurrency fraud schemes
• Payment processing scams
• AI deepfake sexual services
• Bogus federal benefit offers
• Deceptive political ads with fabricated clips of public officials

The Core Problem

Meta estimated that roughly one-third of all US scams involve its platforms. The senators argue that despite massive AI investments, Meta has simultaneously reduced safety staffing, creating a vacuum where fraudulent advertisers exploit the system. Many of these operations trace back to international cybercrime networks.

Context: The FTC estimates Americans lost over $158 billion to scams last year—Meta’s alleged role in facilitating this fraud is now attracting serious regulatory attention.

Market Impact

Meta stock closed at $613.05 (+3.16%), unfazed by the regulatory spotlight for now.

The company maintains its scam prevention efforts are working. But with senators, regulators, and data all pointing in the same direction, Meta faces mounting pressure to prove it.