Combating Mobile Fraud: An AppLift Report

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AppLift’s Newest Fraud Report Reveals News and Entertainment App Categories are at Highest Risk of Fraudulent Activity.

AppLift, a mobile advertising technology company, released the study, “Mobile Advertising Fraud: The Next Battlegrounds,” revealing international fraud distribution data. The e-book is a follow-on report to the company’s 2015 fraud study that uncovers new statistics about mobile fraud, evaluates the current challenges in the space, and the recent evolution of mobile fraud. AppLift’s report identifies that ad exchanges, publishers and attribution partners now have a bigger role than ever to play in mitigating fraud.The report also illustrates key heuristics to detect and prevent fraud and provides guidance for designing and executing on fraud-fighting measures for the entire industry.

According to Business Insider, the amount of global ad revenue wasted on fraudulent traffic could reach $16.4 billion in 2017, making it understandable that 78% of marketers are concerned with ad fraud and bot traffic. AppLift conducted a twelve-week study and found that India and Indonesia have the highest amount of fraud with 31.29 percent and 21.23 percent, respectively. AppLift also found that certain app categories are more susceptible to fraud than others, with entertainment apps and news apps seeing the most fraud traffic.

“As a leader in the mobile ad space, we firmly believe it is our responsibility to not only focus our efforts on detecting and fighting ad fraud, but to also share our learnings with industry peers so that we can all better understand the risks and fight fraud together,” said Tim Koschella, CEO of AppLift (pictured left). “As exemplified by the findings in this report, our fraud detection team meticulously studies each campaign for fraud risks to help advertisers make the most of their spend and gain high-quality users.”

    
        
    
Findings include:

–Countries with the most amount of impression fraud on RTB

India: 31.29%

Indonesia: 21.23%

Singapore: 18.18%

–Countries with the least amount of impression fraud on RTB

Hong Kong: 4.13%

South Korea: 5.48%

Germany: 6.23%

–App Categories with the most fraudulent activity

Entertainment: 22%

News: 22%

Education: 21%

–App Categories with the least fraudulent activity

Parenting: 2%

Shopping: 3%

Travel: 7%

–Most prevalent types of fraud in 2017 — More complex and sophisticated types of fraud have evolved that occur along the click and install/post-install levels: Ad Stacking, Click Injection and Click Stuffing being some of the most prevalent and damaging manifestations of fraud that the industry is facing today.

“The cost of advertising plays a significant role in mobile marketers’ budgets,” said Koschella. “The rise in fraudulent activity not only undermines the integrity of the advertising industry, but is extremely costly for advertisers. AppLift’s sophisticated pattern-detection technology helps marketers to better understand, detect and fight fraud at every level, and therefore, salvage a significant portion of their ad spend.”

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