Meta Platforms, the parent company of Facebook, Instagram and WhatsApp, is facing fresh scrutiny after reports revealed that it knowingly tolerated widespread advertising fraud linked to China to protect billions of dollars in revenue.

A Reuters investigation, based on internal documents and interviews with current and former employees, shows that China-linked advertisers generated more than $18 billion for Meta in 2024. Internal estimates suggest that a significant share of this revenue came from scam ads, illegal gambling promotions, counterfeit goods and other prohibited content.

The documents indicate that, at some points, nearly one in five ads tied to China violated Meta’s own policies. China also emerged as the source of about a quarter of all scam and banned-product ads shown across Meta’s platforms worldwide.

These ads did not target China alone. Fraudsters reached users in the United States, Canada, Taiwan and other markets. Victims fell for fake investment schemes, bogus health products and deceptive online stores. Many lost large sums before Meta removed the ads.

In the second half of 2024, Meta briefly moved to contain the problem. The company set up a specialised team to tackle China-linked ad fraud. The team tightened controls on ad agencies and reduced the volume of banned ads. Internal data showed a sharp decline in problematic advertising during this period.

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The effort did not last. Senior leaders later disbanded the team, relaxed ad restrictions and paused further enforcement plans. Within months, banned ads surged again. Internal concerns grew over user harm and reputational damage.

Employees warned executives that continued tolerance of fraud could erode trust and attract regulatory action. Despite these warnings, internal discussions focused on protecting revenue. China-linked advertising had become too important to Meta’s growth to disrupt.

Meta has defended its approach. The company says it invests heavily in automated systems to detect and remove scam ads. It claims to remove millions of violating ads daily, penalise repeat offenders and cut off rogue partners. Meta also said the China-focused team was temporary and that fraud prevention now sits within broader enforcement systems.

Critics remain unconvinced. They argue that automation alone cannot solve the problem, especially when internal data shows fraudulent ads remain highly profitable. Analysts and consumer advocates say the findings raise serious questions about platform accountability, advertiser integrity and the real cost of growth-driven decisions in digital advertising.

The revelations intensify global pressure on major tech platforms to strengthen ad oversight and protect consumers. For marketers and agencies, the case underscores a growing truth. Transparency, brand safety and trust now matter as much as reach in a digital economy where scale can amplify both opportunity and harm.