Meta faces scrutiny over Chinese-linked gambling scam ads.
Meta is under mounting regulatory pressure following reports that it knowingly allowed Chinese-linked gambling and scam advertisements to operate across Facebook, Instagram, and WhatsApp. Internal documents cited by Reuters suggest the company prioritised advertising revenue despite repeated warnings about rising user harm and enforcement gaps.
Although China bans domestic access to Meta platforms, Chinese advertisers were reportedly permitted to target international audiences. This activity generated more than $18 billion in revenue for Meta in 2024, accounting for roughly 11 percent of its global income. Internal assessments indicated that over $3 billion of this total was associated with scams, illegal gambling, and other prohibited content.
Staff warnings in early 2024 led to the creation of a China-focused anti-fraud unit, which temporarily reduced scam advertising volumes. However, internal records show the initiative was later disbanded and planned enforcement measures were paused. Following these decisions, scam-linked advertising reportedly surged again by mid-2025.
The structure of Meta’s Chinese advertising ecosystem further complicated oversight. Top-tier resellers recruited lower-level agencies, reducing transparency and accountability. Whitelisting practices and delayed human reviews allegedly allowed fraudulent ads to remain live long enough to reach large audiences.
The impact on users has been significant. In March 2025, US authorities seized $214 million linked to a Chinese stock scam promoted via Meta platforms. Victims were reportedly directed into messaging groups controlled by fraudulent operators.
Meta has stated that it continues to remove millions of ads and enforce policies against non-compliant agencies. However, regulators are now examining claims that a substantial portion of Meta’s recent revenue may have come from scam-related advertising, intensifying calls for stronger oversight and accountability across digital advertising platforms.
