Meta faces scrutiny over Chinese gambling scam ads
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Meta accused of profiting from Chinese gambling scam ads
Meta has been accused of allowing widespread fraudulent advertising from Chinese companies across its platforms, despite internal warnings and existing policies against illegal gambling and scams. According to a Reuters investigation, internal documents show that Meta was aware of significant abuse within its advertising ecosystem but continued to permit the activity due to its financial importance.
The documents, produced by teams spanning finance, safety, engineering, and public policy, indicate that Chinese advertisers generated more than $18 billion in revenue for Meta in 2024, accounting for roughly 11 percent of total global income. Internal assessments reportedly estimated that more than one-fifth of this revenue was linked to scams, illegal gambling, and other prohibited content.
In early 2024, Meta established a China-focused anti-fraud team following internal warnings that stronger investment was required to reduce harm. The initiative initially cut scam-related advertising significantly. However, the documents suggest that the effort was later scaled back, with the team disbanded and enforcement measures paused. This reportedly led to a resurgence in fraudulent advertising by mid-2025.
Investigations highlighted weaknesses in Meta’s China advertising structure, where top-tier resellers recruit lower-level agencies, reducing transparency and accountability. Some agencies allegedly promoted their ability to bypass enforcement using artificial intelligence and false documentation. Delays in human review and the use of whitelisting systems further allowed harmful ads to gain traction.
The impact on users has been substantial. US authorities seized $214 million in March 2025 linked to a Chinese investment scam promoted through Meta platforms, which directed victims to fraudulent WhatsApp groups.
Meta has stated that it has removed millions of ads from Chinese advertisers and continues to enforce its policies globally. Nevertheless, regulators are now examining claims that a significant share of Meta’s revenue may have been derived from scam-related advertising.
