Meta, the US technology behemoth, has consistently failed to prevent illegal advertisements for high-risk financial products on its platforms in the United Kingdom, despite previous commitments to block such content, according to a damning review by the UK's financial regulator.
Regulatory Review Reveals Systemic Failures
The Financial Conduct Authority (FCA) discovered that during just one week in November, a staggering 1,052 advertisements for currency trading and complex financial instruments were posted on Meta's platforms by advertisers who lacked proper authorisation to promote them. Alarmingly, 56 percent of these illicit ads originated from unauthorised advertisers that the FCA had already flagged directly to Meta.
These findings, obtained by Reuters and reported here for the first time, underscore Meta's persistent difficulties in addressing fraudulent financial promotions. The review specifically targeted Meta's platforms—including Facebook, Instagram, and WhatsApp—due to their disproportionate hosting of suspicious financial advertisements, according to a source familiar with the FCA's investigation.
Global Exposure to Fraudulent Content
Internally, Meta documents previously reported by Reuters indicate that billions of users worldwide have been exposed to advertisements for fraudulent e-commerce and investment schemes, illegal online casinos, and prohibited medical products. The FCA warned last year that individuals are increasingly targeted on social media by online trading scams where fraudsters offer currency trades.
"Fraud is the most common crime in the UK," stated an FCA spokesperson. "With over half of some scams originating on their platforms, it's vital Meta steps up and uses its tools to protect users from scam content."
Repeat Offenders and Inadequate Response
The regulator repeated its review for another week in December, finding that a small number of repeat offenders were responsible for the majority of illegal ads discovered. Despite regular engagement with Meta regarding scam advertisements, the FCA has observed no material improvement in the company's approach and plans to continue testing its controls and monitoring systems.
Ryan Daniels, a Meta spokesperson, responded to the FCA's findings by asserting that the company aggressively combats fraud and scams globally, taking swift action on the vast majority of reports within days. "Any suggestion that we ignore FCA reports misrepresents our ongoing efforts to protect people," Daniels said.
Meta further clarified that advertisers running financial services ads in Britain must be authorised by the FCA and are responsible for complying with applicable laws.
Regulatory Power Vacuum
Britain's Online Safety Act, which permits regulators to fine social media companies up to 10 percent of global revenue for hosting illegal user-generated content, began implementation in March 2025. However, provisions granting authority over paid scam advertisements have been delayed until at least 2027.
In the absence of legislation, Meta made a voluntary commitment in 2022 to only allow FCA-authorised firms to run financial services advertisements, updating its UK policy accordingly. Currently, the FCA lacks power to take action against Meta itself, as the company is regulated by communications watchdog Ofcom. Ofcom also remains powerless regarding paid scam ads until the Online Safety Act provision takes effect.
An Ofcom spokesperson explained, "We're working at pace to implement this. The timeline has been affected by factors beyond our control, in particular a legal challenge against the government." Ofcom has proposed that social media companies employ automated technology to detect and remove fraudulent content.
International Regulatory Disparities
To assess Meta's effectiveness under different regulatory frameworks, a Reuters reporter created a suspicious investment promotion on Facebook promising 10 percent weekly returns. The ad ran in Britain without further scrutiny after Meta's verification process, but was blocked in Australia, where Meta faces fines up to A$50 million for failing to detect scams under mandatory financial advertiser verification.
Meta attributed the blockage in Australia to enhancements in its financial services verification process there, without detailing specific improvements. The company noted it has increased the percentage of global ad revenue from verified advertisers from 55 percent at the end of 2024 to 70 percent in 2025.
Industry and Advocacy Perspectives
Consumer rights campaigner Martin Lewis argued that big tech companies must stop framing the fight against scam advertisements as a technological problem. "This is a financial problem. If you spend enough money, you can stop the scammers, and we need to change the economics so it is worth their while to spend the money to stop the scammers," he told Reuters.
Digital rights advocacy group Reset Tech examined Meta's ad library over two weeks in July and August, focusing on ads referencing Barclays, HSBC, and Revolut. They found that 51.1 percent of 2,913 identified ads contained multiple red flags, such as offers of impossible returns or suspicious domains, estimating Meta could host 29,068 scam ads referencing these banks annually, resulting in 53.6 million cumulative exposures across Britain and the EU.
Meta contested Reset Tech's findings, calling their classification criteria subjective and unreliable, and noting that suspected scams had significantly lower reach than legitimate ads, indicating successful limitation of violating content distribution.
Barclays revealed that a survey of 2,000 Britons showed eight in ten believe tech firms should do more to stop scams, advocating for collaborative efforts among banks, social media platforms, tech firms, and telecoms companies. Revolut identified Meta's platforms as the biggest source of authorised fraud reported to them, urging Meta to urgently improve verification system effectiveness and demonstrate tangible impacts from anti-scam initiatives. HSBC declined to comment.
Fraud Minister David Hanson stated he will continue pressing tech firms, including Meta, to enhance efforts against scams until the Online Safety Act provision is enforced. "In the meantime ... I expect them to go further and faster in standing up to this threat," he told Reuters.
