Facebook, Instagram, LinkedIn and other social media platforms earned more than €36m from scam ads targeting Irish users last year, according to analysis by banking app Revolut, which accused the big platforms of being incentivised to host fraudulent content.
Revolut commissioned a new peer-reviewed study, carried out by Juniper Research, which shows social media platforms earning €4.4bn across Europe last year from scam ads.
They said for Ireland specifically, one in ten ads on social media are now fraudulent, with the platforms earning an estimated €36.1m from running such ads to Irish consumers.
The platforms within the study include Facebook, Instagram, TikTok, Snapchat, X (formerly Twitter), and LinkedIn.
The White Paper found that the average Irish user encounters 164 scam ads every month, which is projected to rise to 215 if the current trends persist. While the level of scam ads encountered by Irish users is less than that of their European counterparts, the average amount lost per scam social media ad in Ireland is just over €1,500, the highest level in Europe.
Revolut said the study provides evidence that social media platforms are currently operating under a “profound conflict of interest, where the financial rewards of hosting fraudulent content greatly outweigh the costs of policing it.”
“Ultimately, the paper illustrates that excluding the criminals themselves, social media companies are currently the primary beneficiaries of the fraud economy, and unless these firms step up and take meaningful action, it is consumers who continue paying the price,” Revolut said.
The research estimates that social media ad revenue in Europe will grow from €44bn in 2025 to over €98bn by 2030, a growth of 120% in five years.
“Social media platforms have the primary responsibility of reducing both the prevalence and subsequent impact of scam ads. They control the infrastructure, algorithms, and ad approval processes that enable scam content which leads to users’ financial losses,” the research states.
“Platforms cannot shift any blame to users or regulators, and must decide to prioritise user safety over the revenue gained from these scam ads.”
