Meta projected 10% of 2024 revenue came from scams (sherwood.news)

Article summary

Meta projected that 10% of its 2024 revenue, approximately $16 billion, would come from scam ads and sales of banned goods, according to internal documents. The company has been making billions of dollars per year from these sources. Meta has been trying to reduce fraudulent behavior, but cuts to its moderation team have left many user-reported violations ignored or rejected. The company's spokesperson stated that they aggressively fight fraud and scams.

Main themes

• Scam ads on social media
• Meta's revenue from banned goods
• Online fraud and scams
• Social media moderation
• Advertising and revenue models

What commenters say

• The percentage of Meta's revenue from scams seems low, and the definition of a scam may be too narrow.
• Many products advertised online are scams or overpromised and underdelivered, making it difficult for consumers to trust ads.
• Some commenters believe that honest companies are priced out by scammy companies, and that social media platforms prioritize profits over filtering out junk products and services.
• Paying for ad-free experiences, such as YouTube Premium, can be seen as paying protection money to avoid manipulative and unethical ads.
• The prevalence of scams on social media is a sign of a larger problem with the advertising and revenue models used by these platforms.
• Some users have found that using ad blockers or paying for premium services can help avoid scam ads, but others still see them even with these measures in place.
• The line between legitimate and scam ads can be blurry, and some commenters argue that the definition of a scam should be broadened to include more types of deceptive advertising.
• Social media platforms may be unable to effectively filter out scam ads due to the sheer volume of content and the complexity of their algorithms.