Meta Accused of Hiding Scam Ads From Regulators: Report

Meta Platforms Inc. adopted tactics that made it harder for regulators to detect fraudulent advertisements on its platforms while resisting stricter advertiser verification over revenue concerns, according to a Reuters special report published Wednesday.

Citing internal documents from Meta’s finance, legal, public policy and safety teams spanning four years, Reuters said Meta focused on managing regulatory scrutiny rather than eliminating scam ads. The documents detail how Meta responded as governments worldwide intensified oversight of fraudulent advertising.

One key tactic involved Meta’s public Ad Library, a transparency tool often used by regulators to track problematic ads. Reuters reported that Meta identified keywords commonly used by regulators and repeatedly searched for them internally, removing ads flagged as fraudulent. While this reduced the visibility of scam ads in search results, it did little to curb their overall volume.

Sandeep Abraham, a former Meta fraud investigator, described the approach as “regulatory theatre.” Meta disputed the claim, saying removals were part of legitimate enforcement efforts.

The strategy was first deployed in Japan amid discussions on advertiser verification rules, then expanded globally to markets including the U.S., Europe and India. Internal analyses showed universal verification could cut scams but cost $2 billion and reduce revenue by up to 4.8%.

Meta instead adopted a reactive approach, introducing verification only where legally required. Regulators in Taiwan reported scam ads fell sharply after mandates were imposed. European authorities have since raised concerns about Meta’s compliance.

Recently, Meta acquired Singapore-based AI startup Manus, a developer of general-purpose autonomous AI agents, in a strategic move to accelerate its artificial intelligence ambitions and integrate advanced agent technology across its products.