What is ad fraud?
Ad fraud is the fraudulent activity of generating fake impressions, clicks, or conversions on mobile ads for financial gain. Through various methods and tactics, fraudsters deceive advertisers by making them believe that their ads are receiving attention and interaction from users when in fact they are not.
Ad fraud has both direct and indirect consequences for app publishers’ bottom lines. The direct consequence is wasting budget on fake traffic. This leads to a decrease in overall revenue and profits. The indirect consequence is negative brand reputation and can reduce the effectiveness of future ad campaigns.
Common forms of ad fraud in mobile marketing
Although there are many different forms of ad fraud in the mobile marketing industry. However, there are some common forms. Understanding these forms will help you reduce/filter or prevent to minimize the risk to your advertising campaign.
Click spamming
Click spamming, also known as “click bombing”, is a term that refers to a form of fraud that uses bots to generate fake clicks for mobile ads. The main purpose of this form of fraud is to change the recorded data of the ad, increase the number of fraudulent clicks and visits, thereby increasing the revenue recorded for the fraudulent object/channel. This form directly causes a loss of the advertiser’s marketing budget and increases the bid price of a specific keyword.
Click injection
Click injection is a form of fraud that involves using software or malware to generate fake clicks. This type of fraud is often used by fraudsters who control or produce malicious applications. When users download a malicious application, the malicious application will exploit vulnerabilities in the device's operating system and install the malware. From there, it creates fake clicks from the user's real device.
This practice reduces advertising revenue for legitimate app publishers and increases revenue recognition for fraudulent advertisers.
SDK Spoofing
SDK spoofing is a fraudulent practice in which attackers use data from real devices to generate fake app installs. This is accomplished by using malware that is either hidden in the app or directly injected into the SDK code. This malware allows the attacker to control the app or SDK, giving them access to data and functionality that would otherwise be inaccessible.
SDK spoofing is a sophisticated form of fraud that is difficult to detect because the fraudster uses legitimate SDKs and simulates real user behavior. As a result, advertising budgets are wasted without creating any real value.
Cheating with Image Resolution (Pixel Stuffing)
To commit Pixel Stuffing fraud, scammers display a series of ads within a frame that is only 1×1 pixel in size. This technique makes the ads invisible to the user’s eye, but they are still counted as having been displayed in reports. As a result, even though the ads have been delivered, the ad campaigns still do not bring any results to the advertiser because the user does not actually see them.
Ad Stacking
Ad stacking is the practice of placing multiple ads on top of each other within a mobile app or website. This technique is used to artificially increase the impressions and click-through rates of ads, making them appear to be viewed or clicked more times than they actually are, and falsely increasing revenue.
Device ID reset fraud
Device ID reset fraud is the practice of a fraudster re-identifying a stolen or compromised mobile device to make it appear as if it is a new device. The purpose of this is to evade device ID-based anti-fraud systems, allowing the fraudster to conduct illegal activities more easily. Additionally, device ID reset fraud is used to commit unauthorized ad clicks, installs, or in-app purchases.
Duplicate IP
In ad fraud, Duplicate IP is a form of fraud in which an individual or a group generates multiple app installs from the same IP address in a short period of time. Duplicate IP fraud works by using software or automated bots to create fake reviews, ratings, and interactions on an app, making it appear more popular than it actually is.
How to Protect Yourself from Ad Fraud
To protect yourself from ad fraud, it is essential to set up a multi-layered protection strategy. First, you need to identify “normal” user behavior to detect unusual activity. Then, based on this standard, you can monitor your data and blacklist suspicious domains and IP addresses, and add quality publishers and ad networks to the trusted list. You can also use bot management systems and malware blocking software.
However, to improve the effectiveness of ad budget defense, you should use specialized tools specifically designed to combat ad fraud.
Don't worry, we have the solution for you!
Airbridge is a mobile marketing partner designed to give you the most accurate view of your ad performance.
Airbridge helps you monitor traffic sources and fraudulent activity in real time. It identifies unusual activity and monitors for signs of fraud like spam clicks. Airbridge also allows you to personalize fraud detection rules to fit your business needs. In short, it’s a complete solution.
With the growth of mobile advertising, you need to stay vigilant and up to date with the latest advances in ad fraud prevention and detection. By partnering with Airbridge, you can protect your advertising budget and maximize your marketing potential.
We are always ready to support you. Contact us today at: +84 904 106 143 (Ms. Hang Nguyen).
