Welcome to the final installment of our comprehensive series on mobile advertising fraud. Throughout this journey, we've explored the intricate web of deceptive practices that threaten the effectiveness of mobile advertising campaigns, from Click Spamming to Device ID Reset Fraud. As we conclude this series, we will delve into the remaining four insidious schemes that advertisers must remain vigilant against: CPA Fraud, Ad Stacking in Mobile, Device Farm and Device ID Reset Fraud.
These fraudulent tactics continue to evolve alongside the ever-changing digital landscape, making it imperative for advertisers to stay informed and proactive in protecting their investments, optimising user acquisition efforts and maintaining the credibility of their ad placements.
Understanding these deceptive practices with PixelPulse Digital as we look into the complexities of mobile advertising fraud and equip you with the knowledge and strategies needed to navigate this challenging terrain, ensuring that your mobile advertising campaigns remain effective, efficient and trustworthy, while safeguarding your user acquisition efforts!
CPA Fraud (Cost-Per-Action Fraud)
What is CPA Fraud?
CPA Fraud occurs when fraudsters manipulate the Cost-Per-Action model by generating fake conversions or actions to claim undeserved payouts from advertisers.
How CPA Fraud Works:
Fraudsters use various techniques to create fake conversions, such as submitting fake lead forms, installing apps on emulated devices or engaging in other actions that trigger CPA payouts. Advertisers end up paying for actions that do not provide any real value.
CPA Fraud manifests in several forms:
Fake Conversions: Fraudsters submit fake information or perform fake actions to trigger CPA payouts.
Emulated Device Installations: Fraudsters use emulated or virtual devices to generate fake app installations, leading to illegitimate CPA payouts.
CPA Fraud undermines the integrity of the Cost-Per-Action model, resulting in wasted advertising budgets and inaccurate performance data.
Detection and Prevention:
To combat CPA Fraud, advertisers can implement the following measures:
Conversion Validation: Implement strict validation processes to verify the legitimacy of conversions and actions.
Fraud Detection Tools: Utilise fraud detection tools and services, such as Forensiq to identify fraudulent activity and prevent unwarranted payouts.
Traffic Source Analysis: Analyse traffic sources and patterns to identify sources of suspicious activity and optimise the whole process.
Ad Stacking in Mobile Advertising
What is Ad Stacking?
Ad Stacking is a deceptive practice where multiple ads are stacked on top of each other within a single ad placement, making it appear as though multiple ads were viewed and clicked by users, thereby inflating the publisher's revenue.
How Ad Stacking Works:
Fraudsters layer multiple ad creatives within a single ad slot, often using transparent or invisible layers to hide the additional ads. This results in advertisers paying for multiple ad impressions or clicks that users never actually saw or engaged with.
Ad Stacking typically involves the following techniques:
Layering Ads: Fraudsters stack multiple ad creatives within the same ad placement, making it challenging for advertisers to detect the fraudulent activity.
Invisible Ads: Some fraudulent ads are made invisible by setting their opacity to zero, ensuring users cannot see them while they still register as impressions and clicks.
Ad Stacking can lead to inflated ad performance metrics, causing advertisers to waste their budgets on fraudulent impressions and clicks.
Detection and Prevention:
To combat Ad Stacking, advertisers can employ the following strategies:
Ad Verification Tools: Utilise ad verification tools such as IAS or DoubleVerify to monitor ad placements and detect stacked ads.
User Interaction Analysis: Analyse user engagement data to identify discrepancies between reported ad interactions and actual user behaviour.
Transparent Reporting: Work with trusted advertising partners and platforms that provide transparent reporting and auditing of ad placements.
Device Farms
What are Device Farms?
Device Farms are networks of physical or virtual devices that fraudsters use to simulate user interactions, leading to inflated ad engagement metrics.
How Device Farms Work:
Fraudsters control a network of real or emulated devices, which they use to generate fake ad clicks, instals or engagement. These activities give the appearance of genuine user interactions, even though they provide no actual value to advertisers.
Device Farms come in various forms:
Real Device Farms: Fraudsters may operate physical farms of smartphones and tablets, each running automated scripts to generate fraudulent interactions.
Emulated Device Farms: Emulated or virtual devices may be used to simulate user behaviour, creating the illusion of real engagement.
Device Farms deplete advertising budgets, as advertisers pay for interactions that do not lead to genuine user engagement.
Detection and Prevention:
To mitigate Device Farm fraud, advertisers can employ the following strategies:
Device Fingerprinting: Implement device fingerprinting techniques to detect and block suspicious devices.
User Behavior Analysis: Analyse user behaviour patterns to identify anomalies indicative of device farm activity, using tools such as Google Analytics.
Third-Party Verification: Collaborate with third-party verification services such as Integral Ad Science (IAS), or MOAT to audit ad interactions and validate their authenticity.
Device ID Reset Fraud
What is Device ID Reset Fraud?
Device ID Reset Fraud involves fraudsters resetting or changing the unique device identifiers (IDs) of mobile devices to reset ad tracking and manipulate attribution data.
How Device ID Reset Fraud Works:
Fraudsters exploit vulnerabilities in mobile operating systems to reset or change device IDs, making it appear as if a user is a new customer each time they engage with an ad. This manipulation disrupts accurate attribution of user interactions.
Device ID Reset Fraud takes different forms:
ID Resetting: Fraudsters reset the device ID, making it difficult to track user interactions accurately.
Device Cloning: Fraudsters clone device IDs to create multiple fake identities, further complicating attribution.
Device ID Reset Fraud confuses advertisers' attribution models, leading to misallocation of advertising budgets and inaccurate performance analysis.
Detection and Prevention:
To address Device ID Reset Fraud, advertisers can employ the following measures:
Behavioural Analysis: Monitor user behaviour patterns to identify inconsistencies that may indicate device ID reset fraud.
Advanced Attribution Models: Implement advanced attribution models that can detect and account for fraudulent device ID changes such as multi-touch attribution platforms or custom-built attribution models.
Cross-Referencing Data: Cross-reference user data across multiple touchpoints to identify anomalies in user interactions. This may involve using data analytics platforms like Tableau or Looker.
Mobile advertising offers substantial opportunities for reaching a global audience, but it also exposes advertisers to various fraudulent practices that can undermine ROI and disrupt user acquisition efforts. Ad Stacking, CPA Fraud, Device Farms and Device ID Reset Fraud exemplify the tactics used by fraudsters. To protect their investments and navigate the complex landscape of mobile advertising successfully, advertisers must remain vigilant, leverage advanced fraud detection tools and collaborate with trustworthy advertising networks like PixelPulse Digital and other such platforms. By doing so, they can harness the full potential of mobile advertising while safeguarding their budgets and the integrity of their user acquisition campaigns.