The prevalence of fake accounts on Facebook is far worse than investors realise, according to a report from PlainSite.
The report alleges that the number of fake accounts on Facebook likely exceed 50% of its network.
This report was compiled by Aaron Greenspan, who is a former Harvard peer of Mark Zuckerberg and entered into a confidential settlement with Zuckerberg and Facebook in 2009.
In his paper, Greenspan goes into detail about his account of Facebook’s history and its alleged reliance on fake accounts to boost revenue and placate advertisers.
“Fake accounts click on advertising at random, or ‘like’ pages, to throw off anti-fraud algorithms,” Greenspan states. “This kind of activity defrauds advertisers, but rewards Facebook with revenue.”
“Its customers purchase advertising on Facebook based on the fact that it can supposedly target advertisements at more than 2 billion real human beings,” he added.
“To the extent that users aren’t real, companies are throwing their money down the drain.”
Greenspan was the original creator of Harvard’s social network “The Face Book”, and has often publicly shared his distaste of Zuckerberg’s platform – once saying that it has caused “countless deaths”.