Combatting Mobile Ad Fraud

Being in the digital advertising space for years, I’ve seen the dangers of mobile ad fraud first-hand. The industry is losing a shocking amount of money—$84 billion in 2023 alone, and that number is expected to grow even more by 2028. Ad fraud isn’t just a financial drain, it skews the data you rely on to make business decisions. Fraudsters use techniques like click flooding, install hijacking, and bot farms to manipulate performance metrics and siphon away your ad budget. At HYBE, we’re dedicated to helping businesses fight back against these threats with a robust fraud detection and prevention system that delivers real-time protection.

Understanding Mobile Ad Fraud

Mobile ad fraud occurs when bad actors use deceptive methods to simulate fake engagement—whether it’s clicks, impressions, or app installs. The most common forms of mobile ad fraud include:

• Click Flooding: Fraudsters create large amounts of fake clicks to inflate engagement metrics, leading advertisers to believe their ads are performing well when they aren’t.
• Install Hijacking: Fraudsters steal credit for legitimate app installs by injecting clicks at strategic points in the user journey.
• Device ID Reset Fraud: This happens when device IDs are reset repeatedly to simulate new users, giving the appearance of multiple app installs from the same device.
• Bot Traffic and Device Farms: Large collections of devices (or bots) are used to generate fake impressions and clicks, simulating human behavior and inflating campaign metrics.

The challenge isn’t just the money lost to fraud—it’s also the distorted data that makes it hard to optimize campaigns. Fraud leads to false conclusions about which ads are working, who your audience really is, and how successful your campaigns are.

HYBE’s Approach to Fraud Prevention

At HYBE, we’ve built our fraud prevention solutions around the specific needs of advertisers who rely on mobile app marketing. We focus on real-time detection, integration with external tools, and customization options to give advertisers control over their campaigns.

Real-Time Fraud Detection

One of the cornerstones of HYBE’s system is its real-time fraud detection. Fraudsters are always evolving, so your fraud protection system needs to be one step ahead. Here’s what our system does:

• Device ID Monitoring: By tracking device resets, HYBE can detect and block devices that are used repeatedly to create fraudulent installs.
• Behavioral Analysis: HYBE looks at patterns in user behavior—like how long it takes between a click and an install—and flags anything that looks suspicious.
• IP and Geolocation Checks: If multiple installs are coming from the same IP address but with different locations, HYBE’s system will flag this as potentially fraudulent and block the traffic.

These real-time checks allow us to prevent fraudulent traffic before it can impact your campaign.

Internal and External Fraud Solutions

HYBE doesn’t rely solely on in-house systems. We use a combination of internal tools and trusted third-party integrations to provide comprehensive protection:

• Internal Solutions: HYBE’s internal systems are designed to detect and block the most common forms of fraud like click flooding and install hijacking. Our tools evolve as new fraud types emerge.
• Third-Party Integrations: We also work with external partners like AppsFlyer’s Protect 360 and Adjust’s Fraud Prevention Suite to add another layer of protection. These platforms specialize in detecting fraudulent traffic, further securing your campaigns from bad actors.

This combination of internal and external solutions ensures that our clients are covered from all angles when it comes to mobile ad fraud.

Customizable Fraud Detection

Every advertiser’s needs are different, which is why we’ve built customization into our platform. Here’s how it works:

• Custom Alerts: You can set up personalized alerts based on specific fraud detection thresholds, so you’re notified when something suspicious is happening in real-time.
• Dynamic Blocklists: Our system automatically updates blocklists, ensuring that once a source is flagged as fraudulent, it won’t be allowed to engage with your campaigns again.
• Account-Level Control: Advertisers can customize fraud detection thresholds and settings for specific campaigns, allowing for more granular control over how fraud is managed.

This flexibility gives our clients the ability to adapt their fraud prevention strategies to suit their individual needs and goals.

The Financial Impact of Ad Fraud

In 2023 alone, 22% of online ad spend was lost to ad fraud. This doesn’t just mean money down the drain—it also distorts key performance indicators like Return on Ad Spend (ROAS) and Click-Through Rates (CTR). When fraud skews your data, it becomes difficult to make informed decisions about where to invest your ad dollars. HYBE’s fraud prevention solutions ensure that your campaign performance is based on real, accurate data, so you can optimize effectively and make better marketing decisions.

Conclusion

Mobile ad fraud is a constant threat in today’s digital marketing landscape, but with the right tools and strategies, you can protect your campaigns and your data. At HYBE, we’re committed to offering a comprehensive fraud prevention solution that combines real-time detection, internal and external tools, and customizable fraud settings. Our goal is to make sure your campaigns are not only protected from fraud but optimized for success based on real data.

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