Meta Platforms(US:META) Bei Jing Shang Bao·2025-11-09 16:04Core Insights - Meta is projected to generate approximately $16 billion (about 114 billion RMB) in revenue from fraudulent and prohibited advertisements in 2024, accounting for about 10% of its total revenue [1][2] - The company has been criticized for its inadequate measures to identify and block fraudulent ads, exposing billions of users to scams [1][2] - Meta's internal documents reveal that only ads with a 95% likelihood of fraud are banned, leading to a significant number of fraudulent ads remaining on the platform [1][2] Revenue from Fraudulent Ads - In 2024, Meta expects to earn $16 billion from fraudulent ads, with high-risk scams contributing approximately $7 billion annually [1][2] - The company has a cap on actions against suspicious ads, ensuring that any measures taken do not result in a revenue loss exceeding $135 million [2] Regulatory Scrutiny - Global regulators are increasingly concerned about Meta's handling of fraudulent ads, with the SEC investigating the company for its role in promoting financial scams [3][4] - A significant portion of scam-related losses in 2023, specifically 54%, involved Meta's platforms, surpassing all other social media combined [3] Company Response and Future Plans - Meta's spokesperson claims that the internal estimates regarding revenue from fraudulent ads are overly broad and that the company is actively working to reduce such content [3] - The company plans to invest $72 billion in AI and aims to decrease the revenue share from fraudulent ads on its platforms [4] - Despite the anticipated regulatory fines of up to $1 billion, Meta's revenue from high-risk fraudulent ads is projected to exceed these costs significantly [4]