Meta has knowingly permitted a deluge of fraudulent advertising from China to flood its platforms. According to internal documents, the parent company of Facebook and Instagram prioritized protecting roughly $3 billion in annual revenue over shielding users from scams.
Consequently, this decision has exposed millions of global users to illegal gambling, pornography, and financial swindles.
The “Integrity Strategy Pivot”
The crisis stems from a deliberate shift in corporate strategy. In 2024, Meta’s safety teams successfully cut Chinese scam ads by nearly 50%. Specifically, they reduced the prevalence of illicit ads from 19% of total Chinese revenue down to 9%.
However, this progress was short-lived. Following a review and “follow-up” from CEO Mark Zuckerberg, the company executed an “Integrity Strategy pivot.” As a result, the specialized anti-fraud team was disbanded.
Furthermore, the company lifted a freeze on new Chinese ad agencies. This is significant because it effectively reopened the floodgates to bad actors previously identified as high-risk.
Rob Leathern, a former senior director of product management at Facebook, expressed shock at the volume of fraud Meta tolerated.
“The levels that you’re talking about are not defensible. I don’t know how anyone could think this is okay.”
China: The “Scam Exporting Nation”
Internal staff explicitly labeled China as the company’s top source of fraud. In fact, documents suggest that 19% of Meta’s Chinese ad revenue—over $3 billion—derived from banned content.
Meanwhile, the mechanics of this fraud are complex. To clarify, the system involves layers of intermediaries designed to obscure the advertiser’s identity.
The Mechanics of Evasion
Meta sells ads in China through “top-tier resellers.” Crucially, these partners enjoy “whitelisting” privileges. This means their ads are not immediately removed when flagged by automated systems.
Instead, suspicious ads remain live pending human review. Unfortunately, this delay allows scammers enough time to victimize users before the ad is taken down.
Moreover, vetting appears nonexistent. One major advertiser, Beijing Tengze, was listed among Meta’s top 200 global clients. Yet, when investigated, its registered headquarters led to a non-existent address in a remote mountain town.
A Systemic Issue
A report by the consultancy Propellerfish warned that Meta’s own policies fostered “systemic corruption.” Additionally, it noted that the Chinese government generally ignores violations targeting overseas audiences.
Consequently, bad actors face little risk.
Meta’s Response
In defense, Meta spokesperson Andy Stone stated that the anti-fraud team was always intended to be temporary. He added that automated systems have blocked 46 million ads in the last 18 months.
Nevertheless, internal memos reveal a reluctance to ban profitable offenders. In one instance, staff decided against banning big-spending accounts violating rules because “the revenue impact is too high.”
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