（Singapore, 16.12.2025）Meta Platforms knowingly allowed large volumes of fraudulent advertising linked to China to run on Facebook, Instagram and WhatsApp in order to safeguard billions of dollars in revenue, according to a Reuters Special Report published on December 15.
The report, based on internal Meta documents, shows that the social media giant repeatedly scaled back enforcement against scam advertisements when tougher action threatened its fast-growing advertising business in China.
Although China blocks its citizens from accessing major Western social media platforms, including Facebook and Instagram, Chinese companies are permitted to advertise to users overseas. That arrangement has turned China into one of Meta’s most lucrative markets.
Chinese advertisers generated more than US$18 billion in revenue for Meta in 2024, accounting for over 10% of the company’s global sales. However, Meta’s own internal estimates showed that around 19% of that revenue — more than US$3 billion — came from ads promoting scams, illegal gambling, pornography and other banned products.
Internal documents described China as Meta’s largest source of scam advertising worldwide, with victims spanning Asia, North America and other regions.
Internal warnings ignored
Meta staff repeatedly warned senior leadership about the growing harm caused by fraudulent Chinese advertisers. In one internal presentation, employees urged the company to make “significant investment to reduce growing harm” to users.
In response, Meta created a dedicated anti-fraud team in early 2024 focused specifically on China-based advertisers. Using tougher enforcement tools, the team managed to cut the share of problematic Chinese ads nearly in half — from about 19% to 9% of China-related advertising revenue.
But the success came with financial consequences.
Internal documents show that the crackdown raised concerns about its potential “revenue impact.” After what was described internally as an “Integrity Strategy pivot” involving Chief Executive Mark Zuckerberg, the China-focused enforcement effort was paused.
The team was later disbanded, restrictions on onboarding new Chinese ad agencies were lifted, and several planned anti-scam measures were shelved.
Within months, fraudulent advertising surged again. By mid-2025, banned ads had climbed back to roughly 16% of Meta’s China-related revenue, according to internal figures.
Meta has disputed the suggestion that it deliberately weakened enforcement. In a statement, spokesperson Andy Stone said the China-focused team was always intended to be temporary and that Zuckerberg did not order its disbandment.
Stone said Meta blocked or removed 46 million ads submitted through Chinese business partners over the past 18 months, mostly before users saw them, and that the company cooperates with law enforcement to disrupt scam networks.
“Scams are spiking across the internet,” he said, adding that Meta continues to invest in automated tools and enforcement efforts worldwide.
However, the company did not directly address many of the internal documents or business decisions detailed in the investigation.
A system built on intermediaries
Much of the problem stems from how Meta sells advertising in China. The company relies on 11 large Chinese ad agencies, known as top-tier resellers, which in turn recruit smaller agencies and advertisers.
This layered system creates an opaque web of intermediaries, making it difficult for Meta to know who is ultimately placing ads on its platforms.
An external study commissioned by Meta concluded that the company’s own policies were fostering “systemic corruption” in the Chinese advertising market. Fake accounts were easy to obtain, identity checks were weak, and specialised firms openly helped scammers bypass Meta’s enforcement systems.
Some ads were also protected by a “whitelisting” process that delayed removal even after automated systems flagged them for violations. During those delays, the ads often remained active long enough for scammers to reach their targets.
One internal document warned that the added review time allowed scammers to “accomplish their objectives.”
The investigation shows that Meta frequently chose not to penalise major Chinese advertising partners because of the potential loss of revenue.
In one case, staff identified hundreds of accounts generating tens of millions of dollars in rule-breaking ads. When enforcement teams discussed shutting them down, internal messages noted that the “revenue impact is too high.”
Instead, Meta often opted for softer measures, such as reducing commissions paid to agencies that placed too many violating ads. Internal assessments found these steps did little to change advertiser behaviour.
A February 2025 internal document stated that Meta would tolerate higher levels of misconduct from Chinese advertisers on a long-term basis, aiming only to prevent China’s share of global harm from rising further.
The consequences for users have been severe. In March 2025, U.S. authorities seized US$214 million linked to a stock investment scam promoted through Facebook and Instagram ads.
Victims were directed into WhatsApp groups run by individuals in China posing as U.S.-based investment advisers, prosecutors said.
While Meta said it cooperated with law enforcement in that case, internal documents indicate such schemes remain widespread.
The findings add to mounting scrutiny of Meta’s advertising practices. Previous reporting showed that scam-related ads could account for up to 10% of Meta’s global revenue, prompting U.S. lawmakers to call on regulators to investigate.
No market better illustrates Meta’s ongoing trade-off between user protection and profit than China — a country that blocks Meta’s platforms domestically, yet remains one of its most important sources of advertising revenue.
