By now, it's no secret that scam ads are everywhere on Meta's platforms. Facebook, Instagram, Threads, and even WhatsApp have all become fertile ground for fake investments, impersonation schemes, and shady "too good to be true" offers. What's more uncomfortable is just how profitable these scams appear to be.

Earlier investigations have already shown that Meta earned an estimated US$16 billion in ad revenue tied to scam-related content in 2024 alone. Closer to home, Malaysia may have contributed up to RM250 million in problematic ads in 2023. A newer report adds another layer to this story, estimating that roughly US$3 billion of scam-related revenue came from China alone. But the most troubling revelation isn't the money. It's the suggestion that these scams were knowingly tolerated, and that efforts to stop them were quietly slowed down at the top.

What Meta Knew Internally

According to internal documents cited in the report, Meta had already identified China as a major source of scam and banned-product advertising worldwide. Internally, the company believed roughly one-quarter of all scam-related ads across its platforms originated from China. Even more striking, nearly 19% of ads coming from China were flagged as scams, illegal gambling, adult content, or other prohibited material.

This wasn't information buried in some obscure corner of the company. Employees reportedly raised alarms and pushed leadership to make "significant investments" to reduce what they described as growing harm to users. At least initially, those warnings were taken seriously.

The Anti-Fraud Team That Actually Worked

Meta eventually set up a dedicated anti-fraud team focused specifically on illicit advertising coming out of China. This team went further than previous moderation efforts and, for a brief moment, showed real results.

During the second half of 2024, the team reportedly managed to cut the proportion of problematic ads from China almost in half, dropping from 19% of total China-related ad revenue to about 9%. For a platform often criticised for ineffective enforcement, this was a rare example of meaningful progress.

Then came the reversal.

The Sudden Pause That Raised Eyebrows

A late-2024 internal document suggests that the China-focused enforcement work was halted following what was described as an "Integrity Strategy pivot" and follow-up direction involving Mark Zuckerberg. The anti-scam team was reportedly asked to pause its work. By mid-2025, the numbers told their own story. Banned ads once again made up around 16% of Meta's China-related revenue, not far off from where things stood before the crackdown began.

Whether this was a direct order from Zuckerberg or a broader strategic decision remains unclear. Meta has pushed back on the implication. Spokesperson Andy Stone said the China-specific team was always intended to be temporary and denied that Zuckerberg personally ordered it to be disbanded. Instead, Stone claimed the CEO had instructed teams to intensify anti-scam efforts globally, including in China.

Even so, the timing leaves uncomfortable questions unanswered.

China, Scams, and an Awkward Pattern

Internally, Meta reportedly labels China as its top "Scam Exporting Nation." An unusual data point seems to reinforce that view. During China's Golden Week holidays in October, scam activity on Meta platforms reportedly dropped worldwide. The implication is hard to ignore.

Yet despite this apparent link, meaningful action from Chinese authorities is unlikely. The Chinese government typically shows little interest in cracking down on scams as long as its own citizens are not the primary victims. Since Meta platforms are banned for most people in China, local users are rarely affected unless they actively bypass restrictions.

The Bigger Picture for Users

For everyday users, this story highlights a recurring problem with large tech platforms. Scam ads aren't just a moderation failure. They're a business dilemma. Aggressive enforcement risks cutting into highly profitable ad revenue, while weak enforcement erodes trust and exposes users to real financial harm.

Meta's brief success with its China-focused anti-fraud team shows that reducing scam ads is possible when resources and priorities align. The uncomfortable question is whether those priorities can truly hold when billions of dollars are at stake.

For now, users remain stuck in the middle, scrolling past sponsored scams while platforms promise improvement, one policy update at a time.