Mark Cuban Says Facebook Knew, and Meta Files Show It Judged Scam Ad Fines Cheaper Than the Revenue

Mark Cuban says Facebook knew scammers were draining its users, and Meta documents reviewed by Reuters in November 2025 show the company calculated that regulatory fines would cost far less than the revenue those scam ads generated.

The projections put potential penalties at up to $1 billion (£760 million). The files concluded that sum would stay well below the money Meta earned from fraudulent promotions, treating any settlement as a cost rather than a deterrent.

By Meta's own estimate, around 10% of its 2024 revenue, roughly $16 billion (£12 billion), could come from advertising for scams and banned goods. The estimate raised questions about how the company assessed and managed fraudulent advertising.

A separate late-2024 document valued high-risk scam ads at about $7 billion (£5.3 billion) a year. The broader estimate covered illegal online casinos, banned medical products, and fraudulent investment schemes.

What Cuban Says Facebook Allowed

Speaking on the Pivot podcast in August, Cuban said he gets emails every week from older people who believe he sells a diabetes treatment. Some ask whether the cure will work. Others say they have already paid $294 (£224) for it.

He said scammers build an artificial intelligence (AI) copy of his face and voice to push products he has never endorsed, and that Facebook runs them anyway. Cuban called the platform 'the worst of the worst' and said some ads carry fine print admitting the person on screen is AI-generated.

Why Ordinary Users Are the Target

A December 2024 document estimated users across Meta's apps were shown about 15 billion higher-risk scam ads each day. Reuters reported the system bans an advertiser only when it is at least 95% certain the account is running a scam.

Some suspected scammers instead face higher ad rates, which still earn Meta money. Older users may be vulnerable when a trusted face lowers their guard before the disclaimer is read. Deepfake identity-verification fraud attempts rose around 3,000% in 2023, according to identity firm Onfido.

Meta Disputes the Figures

Meta rejects the 10% estimate, describing it as rough and overly inclusive. The company says it removed more than 159 million scam ads in 2025, took down 92% before anyone reported them, and disabled 10.9 million accounts tied to criminal scam centres. It also wants verified advertisers to drive 90% of ad revenue by the end of 2026. That target would increase the share of advertising revenue linked to verified accounts.

The company says user complaints about scam ads fell by more than half over 18 months, and that fraud undermines the trust its advertising business depends on.

Regulators and Courts Close In

The pressure is building. Two US senators urged regulators to investigate Meta over financial scam ads. Rhode Island's attorney general sued the company on 22 October 2026, alleging Meta knowingly helped create, target, and profit from the ads.

The Consumer Federation of America has filed a proposed class action in Washington, DC, and a bipartisan bill would require platforms to verify advertisers or face federal penalties.

Poland has asked the European Commission to fine Meta €250 million ($279 million) over its response to scam ads.

For a business whose documents compared expected fines with scam-ad revenue, the final cost may still be unsettled.