Core Insights - Meta's internal documents reveal that approximately 10% of its revenue in 2024, equating to around $16 billion, will come from fraudulent and prohibited product advertisements, highlighting regulatory gaps in its advertising business [1] - The company has failed to identify and block a significant 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 [2] - Meta's system only bans advertisers when the likelihood of fraud exceeds 95%, opting instead to increase ad costs for those deemed high-risk but not banned, which may lead to users seeing more fraudulent ads [4] Revenue Impact - An estimated one-third of successful fraud cases in the U.S. are associated with Meta, indicating the company's products play a significant role in the global fraud economy [6] - Meta plans to reduce revenue from fraudulent ads in the future but is concerned that this reduction may negatively impact overall business expectations [6] - A spokesperson for Meta described the estimate of 10% of revenue from fraudulent ads as "rough and overly broad," asserting that many ads were not actually violating policies [7]