The Truth About Fraud in Digital Advertising

COMING CLEAN THE TRUTH ABOUT FRAUD IN DIGITAL ADVERTISING* FRAUD IS THE ONLINE ADVERTISING INDUSTRY'S DIRTY SECRET. WEB SECURITY EXPERTS TRAINED TO FIGHT MALWARE AND BANK FRAUD REPORT THAT $6 BILLION IS BEING STOLEN FROM ADVERTISERS IN SCHEMES THAT NOW INVOLVE PROFESSIONAL ORGANIZED CRIME OPERATIONS MR. INVENTORY SUPPLIER ESTIMATED FRAUDULENT TRAFFIC IN THIS COMPLEX AND EVER-CHANGING SYSTEM: 34% A MURKY WORLD ALL AD TRAFFIC t www 1 Hackers 3 Website's high traffic attracts Infected computers visit bogus website, generating traffic infect multiple the attention of automated computers with malware systems 6 National companies who bought the ads Automated systems deliver paid ads to have been bogus website defrauded! Bogus website provides payment to hacker HOW IS FALSE TRAFFIC GENERATED? The ad-tech fraudsters are a new species that are only now being unmasked. HUMAN 1 7% OF web Crowd Sourcing Thousands of humans are recruited and paid a nominal amount to view an article. They are unaware they are performing fraudulent activities. www www Cyclops 125% web Incentivized AdNetwork Individuals are given incentives like reward points, gift cards or bit coins to read an article or to view/click on an ad. They may know they are doing something wrong but abide by a "don't ask, don't tell" policy. Voldemorts know they are doing evil and choose to do so. ADVERTISEMENT Voldemorts 65% OF mobile Click Farms Humans in warehouses who use a combination of mobile devices and sim cards to perform fraud online. They keep changing devices and network to evade detection. Zergs operate in big groups with a malicious intent. In the game StarCraft, Zerg Swarms are universally feared, hated and hunted. IP Address Zergs NON-HUMAN 145% The bot master decides which sites the slave accesses and which ads it views and clicks so OF web its actions appear to be random and to come from the computer of a "real person." Computer Malware Highly sophisticated and difficult to catch Thousands of PCs infected with malware (bot slaves) work in conjunction with a bot master to perform a smart fraud online. VaderBots 115% web Sophisticated fraud Goes around visiting websites, viewing ads and clicking using a fairly sophisticated algorithm. It acts as a ghost not inhabiting anything physical. PhantomBots 15% OF web Basic fraud Goes around visiting websites and clicking ads using a basic algorithm. Detected with minimal effort. Usually runs for a few days until it gets blacklisted. ClickBots 3% oF web Retargeting fraud Bot that can mimic a human's intentions, such as an interest in a specific brand of car. Ads targeted to a particular niche result in a higher CPM than untargeted ads. DeceptiBots deceive advertisers into believing they are receiving valuable targeted clicks. DeceptiBots 135% OF mobile Mobile simulator Mobile simulator on a computer that mimics a smartphone that can run mobile apps. It is used to run mobile apps and perform fraud on the in-app mobile ads. Its real identity remains hidden. CryptoBots INFOGRAPHIC BROUGHT TO YOU BY PIXALATE www.pixalate.com Nail down fraud in your ecosystem with help from Pixalate. pixalate Source: Data measured by Pixalate Inc. for Q3 2013. Data Size: - 10 Billion Impressions. *Traffic generated at the Site through illegal means or in bad faith to defraud the system. %24