Meta, the company behind Facebook and Instagram, reported that more than $3 billion of its ad revenue from Chinese sources was linked to scams.

Internal documents reviewed by Reuters revealed that about 19 per cent of advertising revenue from Chinese firms was connected to illegal gambling, pornography, and other prohibited content, according to Reuters.

Although Meta’s apps are blocked for public use in China, the government permits businesses there to advertise to foreign users.

Ads from Chinese companies now account for more than 10 per cent of Meta’s revenue, roughly $18 billion.

Internal reviews also show that over a quarter of Meta’s scam-related ads came from China, prompting the company to establish an anti-fraud team in 2024 after employees urged “significant investment to reduce growing harm.”

The team managed to cut fraudulent ads by about 10 per cent in the latter half of that year, but their efforts were “paused” following an “Integrity Strategy pivot and follow-up from Zuck,” referring to CEO Mark Zuckerberg.

Documents obtained by Reuters do not explain the meaning or purpose of the “pivot,” but they show that the anti-fraud team was fully disbanded shortly after Zuckerberg’s involvement, and that Meta subsequently lifted the freeze on granting access to new Chinese ad agencies.

“Scams are spiking across the internet, driven by persistent criminals and sophisticated, organized crime syndicates constantly evolving their schemes to evade detection,” a Meta spokesperson said in a statement. “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 platforms about scam activity. And when we determine that bad actors have violated our rules prohibiting fraud and scams, we take action.”

The FBI’s Annual Internet Crime Report showed that financial losses from internet-related crimes rose by more than 30 per cent in 2024, totaling over $16 billion in stolen funds.

Meta earns roughly $7 billion annually from ads it labels as “high risk,” with banned content accounting for about 10 per cent of the company’s total $16 billion revenue in 2024.