Meta Platforms(US:META) Jing Ji Wang·2025-11-10 03:15Core Insights - Meta's internal documents reveal that approximately 10% of its revenue in 2024, equating to around $16 billion, is derived from fraudulent and prohibited advertisements, indicating significant regulatory gaps in its advertising business [1][8]. Group 1: Advertising Revenue and Fraud - The internal documents indicate that Meta has failed to identify and block a substantial number of violating ads over the past three years, exposing billions of users on platforms like Facebook, Instagram, and WhatsApp to investment scams, online gambling, and prohibited medical products [3][6]. - Meta's platforms reportedly push around 15 billion fraudulent ads to users daily [3]. - A significant portion of fraudulent ads comes from advertisers already flagged as "suspicious" by Meta, with the company opting to increase ad costs for these advertisers rather than banning them outright [6]. Group 2: Impact on Business and Future Plans - Meta acknowledges that its products have become integral to the global fraud economy, with estimates suggesting that about one-third of successful fraud cases in the U.S. are linked to Meta [8]. - The company plans to reduce revenue from fraudulent ads in the future but expresses concerns that this reduction may negatively impact overall business expectations [8]. - A Meta spokesperson described the estimate of 10% of revenue from fraudulent ads as "rough and overly broad," asserting that many flagged ads were found not to be in violation upon further review [8].