November 2025 – Page 12

Meta Reportedly Earns $7 Billion Annually from Scam Ads on Facebook and Instagram — Reuters Investigation Reveals Widespread Fraud

A new investigative report has revealed that Meta Platforms Inc., the parent company of Facebook, Instagram, and WhatsApp, earns an estimated $7 billion annually from advertisements linked to fraudulent or high-risk activities. The findings, based on internal Meta documents obtained by Reuters, paint a troubling picture of how scam ads have become embedded in the company’s advertising ecosystem — and how Meta’s internal policies may indirectly profit from them.

According to the documents, Meta displays as many as 15 billion “high-risk” ads per day, many of which promote fraudulent e-commerce schemes, illegal gambling platforms, and banned medical products. These ads target users globally through Facebook’s and Instagram’s algorithmic systems, often exploiting Meta’s data-driven personalization features to reach vulnerable audiences.

Internal Tolerance for Scam-Linked Revenue

The documents reviewed by Reuters indicate that Meta’s internal enforcement systems use automated detection tools to flag suspicious advertisers. However, the company reportedly bans these advertisers only when its systems are 95% certain that the ads are fraudulent. When confidence falls below that threshold, Meta does not remove the ads — instead, it imposes higher advertising fees on the suspected accounts as a penalty, effectively allowing them to continue operating while generating revenue for the company.

This practice means that Meta benefits financially from potentially fraudulent advertisers, even as users are exposed to harmful content. Once users engage with such ads, Meta’s ad-personalization algorithms often recommend similar advertisements, creating a cycle in which scam-related content continues to spread across the platform.

Scam Ads Represent Up to 10% of Meta’s Annual Revenue

Across various internal departments — including finance, safety, and government affairs — Meta employees estimated that scam and prohibited advertisements contributed roughly 10.1% of the company’s total revenue in 2024, equivalent to about $16 billion. These earnings were described internally as “violating revenue,” referring to income generated from ads that breach Meta’s internal policies or local advertising laws.

More concerningly, the reports show that Meta had internal limits on how much revenue it was willing to sacrifice to combat fraudulent advertising. In early 2025, enforcement teams reportedly could not take actions that would cost the company more than 0.15% of its total revenue — about $135 million out of the $90 billion generated in the first half of the year. This restriction effectively placed a cap on the company’s willingness to remove scam ads that could hurt its financial performance.

Meta Responds: “Data Misrepresented”

In response to Reuters’ findings, Meta spokesperson Andy Stone rejected the characterization of the documents, stating that they “present a selective and misleading view” of the company’s internal processes. Stone explained that the 10.1% figure was a “rough and overly inclusive” estimate that also captured “many legitimate ads.”

“We aggressively fight fraud and scams because people on our platforms don’t want this content, legitimate advertisers don’t want it, and we don’t want it either,” Stone said. He added that Meta has made “substantial progress,” claiming that user reports of scam ads have fallen by 58% over the past 18 months and that the company removed 134 million scam-related ads globally in 2025 alone.

Despite these efforts, Reuters reports that Meta’s own internal assessments contradict its public statements. A May 2025 internal safety division report found that Meta platforms were implicated in one-third of all successful scams in the United States, while another analysis concluded that “it is easier to advertise scams on Meta than on Google.”

Regulators Investigate Meta’s Role in Global Scam Epidemic

Meta’s handling of scam ads has drawn scrutiny from regulators across several jurisdictions. The U.S. Securities and Exchange Commission (SEC) is reportedly investigating Meta’s advertising operations and its potential role in facilitating large-scale online financial scams.

In the United Kingdom, a 2023 report by the Financial Conduct Authority (FCA) found that Meta’s platforms were responsible for 54% of all payments-related scam losses in the country — more than any other social media platform combined.

Experts argue that Meta’s advertising model, which prioritizes engagement and personalization, has unintentionally become fertile ground for fraudsters. Once a user clicks on or interacts with a scam ad, Meta’s algorithms serve them more similar content, amplifying exposure and risk.

Meta’s Broader Enforcement Actions

In a separate update released earlier this year, Meta announced that it had taken enforcement action against about 500,000 accounts involved in spam or fake engagement behavior during the first half of 2025. The company also removed around 10 million fake profiles, many of which were impersonating well-known content creators.

These actions were part of Meta’s broader initiative to improve “feed integrity” and promote authentic user content. However, the company’s update did not address enforcement measures specifically related to scam ads, leaving questions about how aggressively Meta intends to confront the issue moving forward.

A Growing Ethical Dilemma

The revelations add to growing criticism of Meta’s business practices and the ethical implications of its advertising algorithms. As digital fraud surges worldwide, consumer advocates and lawmakers are urging Meta to adopt stricter ad verification systems and greater transparency in its revenue sources.

While Meta insists that it is committed to protecting users and cleaning up its platforms, the internal documents suggest a fundamental tension between profit maximization and user safety — one that regulators may now seek to resolve through tighter oversight and new accountability frameworks.

Berger Paints Nigeria Plc has announced an interim dividend of 40 kobo per 50 kobo ordinary share, rewarding shareholders for a strong financial performance in the first nine months of 2025. The dividend will be paid to shareholders whose names appear in the company’s register as of November 11, 2025, with electronic payments scheduled for November 19, 2025.

The announcement, contained in a statement filed with the Nigerian Exchange Limited (NGX), follows the release of Berger Paints’ nine-month unaudited financial results, which showed a pre-tax profit of ₦1.46 billion, representing a remarkable 373% year-on-year increase compared to the same period in 2024. The company said the dividend payment is subject to withholding tax and regulatory approval in line with standard practice.

This interim dividend represents a 100% increase over the 20 kobo paid during the same period last year, signaling management’s growing confidence in the company’s earnings momentum and liquidity strength.

Dividend and Market Metrics

The declared dividend of 40 kobo per share amounts to a total payout of approximately ₦115.92 million. Based on the company’s market price of ₦41 per share, the interim dividend translates to a yield of 0.97% and a dividend payout ratio of 11.98%.

Berger Paints also advised all shareholders to complete their e-dividend registration to ensure prompt payment on the scheduled date. The company reaffirmed its commitment to maintaining efficient shareholder communication and transparency in corporate governance.

Robust Financial Performance

Berger Paints’ financial statement for the period ended September 30, 2025, revealed strong earnings growth across all key performance indicators.

Profit before tax (PBT) for the third quarter rose 138% to ₦518.6 million, compared to ₦218.1 million recorded in the same period of 2024.
Profit after tax (PAT) also more than doubled to ₦343 million, up from ₦148 million last year.
For the nine-month period, PBT reached ₦1.46 billion, while PAT jumped to ₦968 million, up from ₦202 million in 2024.

The company attributed the outstanding performance to higher paint sales volumes, effective cost control, and enhanced operational efficiency, which helped cushion the impact of inflationary pressures and rising input costs.

Revenue performance was equally impressive. Q3 2025 revenue rose 20.5% year-on-year to ₦3.1 billion, while cumulative revenue for the nine-month period climbed 24% to ₦9.3 billion, compared to ₦7.4 billion in the same period of 2024.

The company’s paints and allied products business segment remained its largest revenue contributor, accounting for 97% of total turnover (₦9.04 billion), while contract services contributed ₦271.6 million.

Balance Sheet Strength and Market Performance

Berger Paints also demonstrated improved balance sheet resilience, with total assets rising to ₦8.01 billion and shareholders’ equity increasing to ₦4.51 billion, representing an 18% year-on-year growth. This strong financial base provides the company with the flexibility to invest in capacity expansion, product innovation, and distribution network upgrades.

On the capital market front, Berger Paints’ share price has appreciated by 95% year-to-date, one of the best performances among industrial goods stocks on the NGX in 2025. The stock is currently trading around ₦39–₦41, supported by consistent earnings growth and a stable dividend policy.

Strategic Focus and Outlook

Analysts view Berger Paints’ latest results as a reflection of its successful cost optimization strategies and product diversification efforts, which have helped the company maintain profitability despite macroeconomic headwinds. The company’s management has continued to invest in automation, distribution, and sustainability initiatives to improve competitiveness and market share.

Berger Paints’ continued focus on innovation, customer satisfaction, and value creation has positioned it as one of the most resilient brands in Nigeria’s industrial goods sector. The decision to double the interim dividend demonstrates the company’s strong financial health and its commitment to delivering consistent returns to investors.

“We are pleased to reward our shareholders for their continued support,” a company representative noted. “The strong financial results reflect our disciplined execution, efficient operations, and commitment to delivering value despite a challenging economic environment.”

With sustained growth in revenue, profit, and equity, Berger Paints Nigeria Plc is poised to maintain its trajectory of steady earnings and shareholder value creation as it approaches the end of the 2025 fiscal year.

Month: November 2025

Key Highlights (Q3 2025 vs Q3 2024)

Management Commentary

Performance Drivers

Balance Sheet and Financial Stability

Market Performance and Capital Plans

Bottom Line

High Demand, But At a High Price

Investor Sentiment and Debt Sustainability

Zenith Bank’s Performance Reflects Sector Resilience

Outlook: Cautious Optimism for 2026

Banks Prefer Safety Over Lending

Government Debt Operations Inject Fresh Cash

Minimal Borrowing Reflects Low Credit Appetite

Policy Implications for the CBN

Analysts Caution on Structural Gaps

Parallel Market Records Slight Appreciation

Week-on-Week Performance and Context

Foreign Reserves Climb to $43.32 Billion

Analysts Warn of Near-Term Volatility

Policy Outlook and Budget Context

Internal Tolerance for Scam-Linked Revenue

Scam Ads Represent Up to 10% of Meta’s Annual Revenue

Meta Responds: “Data Misrepresented”

Regulators Investigate Meta’s Role in Global Scam Epidemic

Meta’s Broader Enforcement Actions

A Growing Ethical Dilemma

Food Prices Drive Overall Disinflation

Broad-Based Decline Across Non-Food Categories

Monetary Policy Outlook and IMF Engagement

Economic Implications and Outlook

Dividend and Market Metrics

Robust Financial Performance

Balance Sheet Strength and Market Performance

Strategic Focus and Outlook

Commitment to Operational Excellence and Transparency

Advisers Praise Zeenab’s Consistency and Market Performance

Strengthening the Nigerian Capital Market

Uneven Investment Flows and Rising Poverty

Redirecting Capital for Inclusive Growth

Experts Push for Domestic Capital Mobilization

Bridging the Regional Investment Divide

Strengthening Research-Driven Food Security

Vice Chancellor’s Response

Driving Inclusive Agricultural Innovation