Mobile Fraud Detection: Protecting Your App Marketing Investments

As the mobile app marketplace continues to grow, so too does the problem of fraud. Marketers are spending billions of dollars each year on advertising their apps – not all of this spending goes to real users. Fake clicks, bots, and bogus installs are running off budgets that could be used more wisely. That is why Mobile Fraud Detection will be one of the most critical and valuable tools we have in the marketer’s toolbox. Not only will ad campaigns be delivered to real users, but they will also produce genuine results.

What is Mobile Fraud Detection?

The term Mobile Fraud Detection refers to the detection and prevention of fraud in mobile advertising. Fraudsters will create fake installs, generate automated clicks, and use stolen user identifications, just to trick marketers into paying for outcomes that are not real. This is a waste of money and hinders campaign optimization as the information is skewed.

Think of Mobile Fraud Detection as a filter between valid users and invalid users. By eliminating the invalid or fraudulent traffic, advertisers generate useful information on what is working or not working. It also results in proper spending that will lead to greater growth.

The scale of the problem is astounding. It has been reported that advertisers lose over $80 billion every year from fraudulent behaviour. In some markets, 25% of app installs may be fraudulent. Without Mobile Fraud Detection, businesses risk losing a substantial portion of their marketing budget.

For instance, a gaming app may have running ads that generate 10,000 installs. If 3,000 of those installs are ultimately fraudulent, then not only did that money go to waste, but also resources were wasted analyzing and acquiring information from a bad source. This is why the have great fraud prevention efforts are needed.  One approach to enhancing Mobile Fraud Detection could be in working with a mobile measurement partner (MMP). Apptrove, for example, is a reputable MMP that helps you not only measure your advertisement campaigns, but also works to spot and block suspicious activity. Apptrove allows marketers to apply a robust analytics methodology while still protecting against fraud, therefore simplifying their marketing investments.

Common Types of Mobile Ad Fraud

There are several strategies that fraudsters attempt to bypass mobile advertisement protections, but here are just a few of the most common examples: 

Click Spam – Scripts or bots used to create clicks without any real user interest, allowing advertisements to appear as if they performed better than they actually did.

Fake Installs – Fraudsters either set up device farms or use emulators to fabricate thousands of fake app installs. 

Click Injection – Hackers hijack a legitimate app install from a real user before payment is made.

SDK Spoofing – By mimicking the data of a real user, fraudsters can fool advertisers into believing these were real installs.

Mobile fraud detection systems aim to uncover these tactics by analysing traffic patterns, installation timestamps and device behaviors.

The Importance of Fraud Prevention 

While fraud detection is a significant part of the process, so is fraud prevention. Prevention means preventing fraud before it reaches a campaign stage. For example, Apptrove and MMPs employ advanced algorithms and machine learning models to identify suspicious clicks in real time, so marketers do not just have to clean up after the damages are done, but also avoid spending the money in the first place.

By deploying mobile fraud detection along with other fraud prevention tools, your business will continue to minimize risk, save the budget and focus only on true growth.

Mobile Ad Fraud and Its Consequences

Mobile ad fraud encompasses all unethical practices that deceive advertisers in the mobile ecosystem. Aside from the economic harm it inflicts, it creates ongoing issues as well. Fraudulent data can lead marketers to make poor choices, such as going deeper into channels that aren’t actually working.

Another significant impact of mobile ad fraud is trust. When advertisers believe their results are not accurate, they may scale back their investments. This hurts publishers and developers who earn revenue from honest traffic. Strong Mobile Fraud Detection restores trust by ensuring that the data represents the truth.

Conclusion

The mobile advertising market is growing rapidly, and fraud risk is growing at a similar pace. Without strong Mobile Fraud Detection, companies will lose large sums of their marketing budgets to bots, fake installs, and dishonest characters. Tools like Apptrove, which can be both an MMP and fraud prevention partner, will bring companies a full circle of performance and fraud protection.

Utilizing the fraud prevention methods, education around mobile ad fraud, and a robust, strong mobile fraud protection will help advertisers do their best to minimize non-fraudulent activity and focus on growth. In a digital world where every dollar counts, leading with mobile fraud detection is no longer an option—it is essential.

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