The short versionOn The Joe Rogan Experience #2567, journalist Mariana van Zeller walked Rogan through a Reuters investigation by Jeff Horwitz. Internal Meta documents projected about 10% of 2024 revenue, roughly $16 billion, from ads for scams and banned goods. Meta bans an advertiser only when its systems are at least 95% certain of fraud; below that, likely scammers pay higher ad rates. Meta calls the estimate "rough and overly-inclusive." The clip went viral on X on October 20, 2026.
A year-old investigation got a second life this week. On The Joe Rogan Experience, a journalist explained how Meta handles suspected scam advertisers, and the clip spread fast on X on October 20.
What happened
On episode #2567, journalist Mariana van Zeller walked Rogan through a Reuters investigation by Jeff Horwitz, published November 6, 2025, which went on to win the 2026 Pulitzer Prize in Beat Reporting. Rogan's reaction: "If you're charging more money, that means you know something's wrong with this ad."
The details
The revenue. Meta internally projected it would earn about 10% of its 2024 revenue, roughly $16 billion, from ads for scams and banned goods, according to the documents Reuters reviewed (CNBC, The Verge).
The volume. One December 2024 document estimated users are shown 15 billion "higher risk" scam ads a day, CNBC reports, citing Reuters.
The 95% rule. Per Reuters, Meta bans an advertiser only when its systems predict at least 95% certainty of fraud. Below that, Meta charges higher ad rates as a penalty. Internal documents called these "penalty bids."
Meta's side. Meta said the leaked documents "present a selective view" of its approach to fraud and scams and called the 10% estimate "rough and overly-inclusive" (CNBC). Meta says it removed over 159 million scam ads in 2025 (Meta Scam Protection Center).
The cost. People reported losing nearly $1 billion to business impersonators in 2025, according to the FTC.
Why brands should care
Scammers bid in the same ad auctions you do, so they can push up what you pay to reach the same people. And some of them pretend to be real businesses. If a fake version of your shop takes a customer's money, the customer often blames you.
What to do
Our suggestions, not Meta guidance:
- Search yourself. Type your business name into the Meta Ad Library today.
- Report fakes. Report any page or ad pretending to be you, and keep screenshots.
- Tell customers how you sell. Post your real website and payment methods on your page, so fakes are easier to spot.
- Repeat monthly. Fake pages come back. A five-minute check once a month is enough for most small businesses.
Sources
- Reuters, Jeff Horwitz: Meta is earning a fortune on a deluge of fraudulent ads (Nov 6, 2025)
- Pulitzer Prizes: Jeff Horwitz and Engen Tham, Reuters
- CNBC (Nov 6, 2025)
- The Verge (Nov 7, 2025)
- The Joe Rogan Experience #2567 and JRE Clips
- Meta Scam Protection Center
- FTC: imposter scam losses in 2025
FAQ
What are Meta's penalty bids?
According to internal documents reported by Reuters, Meta charges higher ad rates to advertisers it suspects of fraud but is less than 95% sure about, instead of banning them. The documents called these penalty bids.
How much does Meta make from scam ads?
Internal documents reported by Reuters projected about 10% of 2024 revenue, roughly $16 billion, from ads for scams and banned goods. Meta called that estimate rough and overly-inclusive.
How do I find fake ads using my business name?
Search your business name in the Meta Ad Library at facebook.com/ads/library and report any page or ad pretending to be you.
