Meta’s internal documents dropped a bombshell that should surprise exactly no one: the company potentially raked in $16 billion from scam advertisements in 2024—roughly 10 percent of its total revenue. While you’ve been dodging fake Ray-Ban ads and sketchy crypto schemes in your feed, platforms have been quietly banking billions from the very fraudsters targeting your wallet. Americans’ estimated total loss from fraud in 2024 was almost $196 billion.
The SCAM Act Demands Basic Accountability
The aptly named SCAM Act, introduced by Senators Ruben Gallego (D-AZ) and Bernie Moreno (R-OH), tackles this head-on with surprisingly straightforward requirements. Platforms must:
- Verify advertisers’ government-issued identification
- Respond swiftly to consumer fraud reports
- Provide better tools for users to flag scam content
Fail to take these “reasonable steps,” and the FTC plus state attorneys general can haul you into court. “If a company is making money from running ads on their site, it has a responsibility to make sure those ads aren’t fraudulent,” Gallego stated, cutting through the usual tech industry deflection.
The enforcement mechanism isn’t revolutionary—it treats scam-enabling as what it already should be: a violation of rules against unfair business practices.
The Numbers Tell a Devastating Story
Meta’s leaked internal policies reveal the rigged game clearly. Small fraudsters got booted after eight strikes, while big-spending scammers could rack up 500-plus violations before facing consequences. Money talked; consumer protection walked.
Americans paid the price: $19 billion in fraud losses during 2024 according to FTC data, with seniors bearing $81.5 billion in estimated total losses. The banking industry, consumer groups, and AARP have rallied behind the legislation.
“We need to prevent scams before they ever reach a bank,” noted the American Bankers Association, acknowledging that playing defense after fraud occurs costs everyone. Senator Moreno emphasized the urgency: “We can’t sit by while social media companies have business models that knowingly enable scams that target the American people.”
Meta disputes the revenue figures and claims regulatory cooperation, but the strike system disparity speaks louder than corporate PR. Your social feeds might finally get cleaner if platforms face real consequences for profiting from fraud instead of just issuing apologies after the damage is done.
