Tomahawk, WI 02/06/2014 (BasicsMedia) – Lately, reports have emerged indicating that Facebook Inc (NASDAQ:FB) has a large number of fake accounts. This comes at a time when the company has reported its fourth quarter financial reports, which have been received quite well in Wall Street, and by a number of analysts. Facebook has seen an upsurge in revenue obtained from mobile ads, which is expected to keep growing in 2014 and beyond. The company’s stock has been the biggest beneficiary rising to record levels in the last few days since the latest financial reports were published.

It would be impossible for Facebook Inc (NASDAQ:FB) to avoid completely bad trends such as that of fake accounts. On the other hand, what is causing worries within the company and beyond is that the number of fake accounts keeps increasing. Currently, after scrutiny of the company’s 10K-filing, it emerges that it has more than 137 million fake accounts. If you want to understand the significance of this number, then it would be good to remember that Twitter currently boasts of around 200 million active users, which is only 70 million more than the FB fake accounts.

What this also means is that between 5.6% and 11.2% of all user accounts in Facebook, are of a fraudulent nature. As of December 2013, the company reported that it knew of more than 67 million fraudulent Facebook accounts. This is a significant number bearing in mind that the company boasts of total users numbering more than 1.23 billion, making it the largest in the entire globe. The number of fake accounts is 67 million, if you use the 5.6% figure that Facebook Inc (NASDAQ:FB) issued. If you calculate with the 11.2%, then you realize that there are 137 million fake accounts.

Around 4.3 percent of all accounts in Facebook Inc (NASDAQ:FB) are duplicates. What this means is that they belong to people who already have other active accounts in Facebook. The number of duplicate accounts ranges between 52.8 million and 97.2 million. Similarly, between 9.8 million and 25.9 million accounts are misclassified. As a further demonstration of the seriousness of these reports, the company announced that between 4.9 million and 14.8 million accounts were created purely to violate the rules and policies that Facebook has put in place.

What is of more concern is the fact that Facebook Inc (NASDAQ:FB) believes that these numbers are just but estimates. Therefore, there could be more than 137 million fake accounts currently being operated on Facebook. Secondly, even if one were to deduct this number from the global figure of 1.23 billion users on Facebook, it would not make it less valuable than it is at the moment. To come up with such figures, Facebook examined daily active users, monthly active users, mobile daily active users, mobile monthly active users, and similar metrics to come to this conclusion.

The fact that Facebook Inc (NASDAQ:FB) has more than 137 million fake accounts will not have a serious negative impact on its value and attractiveness to investors. Therefore, there is nothing to worry about in that regard, since this has not hampered its ability to make profits, from its genuine and real accounts.

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