Latest podcast from @Gregory_C_Allen has an insane section on criminal activity at Meta.
Internal docs leaked to Reuters show:
• 10% of all Meta revenue comes from ads for scams & banned goods ($16B/year)
• Meta estimates it's involved in 1/3 of all successful scams in the US
• That suggests they drive $50B in scam losses for US consumers alone each year
• Meta earns ~$3B annually from scam/banned goods ads run by Chinese operations alone
The China case study:
• In 2024, Meta made $18B+ from Chinese companies advertising to foreign consumers
• Internal teams found ~19% was scams/banned content
• An anti-fraud team successfully cut these ads in half
• When Zuckerberg saw the revenue impact, he told them to "pause" and the team was disbanded
• By mid-2025, banned ads climbed back to 16% of China revenue
• This results in money being stolen and going directly from ordinary Americans to Chinese criminals
The deliberate enabling:
• Fraud earns 10% of all revenue, but anti-fraud teams were blocked from any action costing >0.15%, so they couldn't effectively do anything
• Meta charged higher rates for suspected fraudulent ads — a "scam tax"
• Their algorithm naturally identifies people vulnerable to frauds and feeds them more and more
The cold calculation:
• Meta anticipated up to $1B in regulatory fines for this
• But they make $3.5B every 6 months from high-risk ads
• They view these fines as just "cost of doing business"
Senators Blumenthal & Hawley now calling for FTC/SEC investigations in a blistering letter, noting that all this happened while Meta cut safety staff and moved billions over to VR and AI.
WTF.
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