Social media scam ads cost platforms billions, leaving users exposed to fraud
Fraudulent advertisements on major social networks generate vast revenue while tricking users into handing over funds and personal data, according to new research.
Key points
- Nearly one trillion scam ads were served to European social media users in 2025, generating £3.8 billion in platform revenue.
- Meta projected that ten per cent of its 2024 revenue would come from ads for scams and banned goods, amounting to $16 billion.
- Thirty per cent of people who lost money to scams last year said the fraud originated on social media platforms.
Organisations and individuals relying on social media for communication or marketing are facing a surge in fraudulent advertising that generates billions in revenue for platforms while exposing users to financial loss. According to research published by ESET Research, the sheer volume of scam ads on these networks means that trust in the platform itself does not guarantee safety for the content displayed within its feeds.
Who is affected by this advertising fraud?
Consumers across Europe and the United States are the primary targets, with nearly one trillion scam ads served to European social media users in 2025. In the US, Meta alone projected that ten per cent of its 2024 revenue would derive from ads promoting scams and banned goods, a figure estimated at $16 billion. The research indicates that thirty per cent of individuals who reported losing money to scams last year said the incident began on social media, highlighting the platform's role as a major vector for fraud.
What types of scams are appearing in these ads?
Fraudulent advertisements often impersonate legitimate companies to direct victims to phishing sites designed to mimic official versions. Other common tactics include offering limited-time deals on goods to create urgency, promising high-return cryptocurrency investments with no downside, or impersonating customer support for banks. Some ads promise mega giveaways of cash and prizes, requiring users to share personal and financial information to access the rewards, while others use fake security warnings to scare victims into action.
How do these ads compromise user data or funds?
These ads serve various malicious purposes, ranging from outright malware installation to direct financial theft. Malvertising can exploit browser or software vulnerabilities through a single click, or trick users into installing malware via app downloads. Other campaigns persuade users to hand over personal information through prize giveaways or questionnaires, which can subsequently be used for identity fraud. Some ads target finances directly by asking for money for fictitious investment schemes, non-existent products, or fake fees, while covertly harvesting credit card details on fake e-commerce sites.
What regulatory actions are being considered?
In September, the US Federal Trade Commission (FTC) raised questions about whether platforms should be required to stop impersonation scam ads from reaching consumers. The FTC is concerned that ad tools offered by platforms can generate copy, images, and video, and optimize targeting regardless of legitimacy.
The regulator may consider forcing platforms to vet advertisers, monitor posted ads, investigate scams, remove fraudulent advertising, and pursue disciplinary action, although this rulemaking is in its earliest stages. Banks in the UK argue that social media platforms should do more to police this content, as they are responsible for reimbursing customers for some authorized push payment losses.
What affected people can do
Teams usually advise users to treat every advertisement with suspicion, regardless of how well-known the hosting platform appears. Check whether the website URL matches the official domain of the company being advertised, as scammers often use slight variations to mimic legitimate sites. Recognise that urgency is a common tactic; offers that demand immediate action or payment are frequently fraudulent. Verify any investment opportunities or prize claims through official company channels rather than clicking through ad links. Monitor bank statements regularly for unauthorised transactions and report any suspicious activity to your financial institution immediately.
What to do and how to stay safe: ESET Research
- Verify the legitimacy of any advertised offer by visiting the official website directly through a browser search, not by clicking ad links.
- Enable multi-factor authentication on all financial and social media accounts to add an extra layer of security against credential theft.
- Install and maintain reputable security software that can detect and block malicious websites and malware associated with fraudulent ads.
- Educate staff and family members on common scam tactics, such as fake security alerts and impersonation, to reduce the risk of falling victim.
Step-by-step guide: Spot Business Email Compromise: Hidden Signs and Immediate Response
General security guidance from the Phish Herald newsroom. It is not confirmed advice from the organisations named in this story.
Frequently asked questions
How much revenue do scam ads generate for social media platforms?
In Europe, nearly one trillion scam ads were served in 2025, generating an estimated £3.8 billion in revenue, while Meta projected $16 billion from such ads in 2024.
What percentage of scam losses start on social media?
Nearly thirty per cent of people who reported losing money to a scam last year said it started on social media, according to the research.
Is the US Federal Trade Commission taking action against these ads?
The FTC has asked whether platforms should be required to stop impersonation scam ads and may consider forcing them to vet advertisers and remove fraudulent content.
