{"id":1663,"date":"2015-06-02T09:15:49","date_gmt":"2015-06-02T16:15:49","guid":{"rendered":"https:\/\/www.kochava.com\/?p=1663"},"modified":"2022-08-18T15:13:14","modified_gmt":"2022-08-18T22:13:14","slug":"mobile-fraud-time-start-paying-attention","status":"publish","type":"post","link":"https:\/\/www.kochava.com\/ko\/blog\/mobile-fraud-time-start-paying-attention\/","title":{"rendered":"Mobile Fraud: It\u2019s Time To Start Paying Attention"},"content":{"rendered":"[vc_row type=&#8221;in_container&#8221; full_screen_row_position=&#8221;middle&#8221; scene_position=&#8221;center&#8221; text_color=&#8221;dark&#8221; text_align=&#8221;left&#8221; overlay_strength=&#8221;0.3&#8243; shape_divider_position=&#8221;bottom&#8221;][vc_column column_padding=&#8221;no-extra-padding&#8221; column_padding_position=&#8221;all&#8221; background_color_opacity=&#8221;1&#8243; background_hover_color_opacity=&#8221;1&#8243; column_link_target=&#8221;_self&#8221; column_shadow=&#8221;none&#8221; column_border_radius=&#8221;none&#8221; width=&#8221;1\/1&#8243; tablet_width_inherit=&#8221;default&#8221; tablet_text_alignment=&#8221;default&#8221; phone_text_alignment=&#8221;default&#8221; column_border_width=&#8221;none&#8221; column_border_style=&#8221;solid&#8221;][vc_column_text]Fraud is a growing issue globally. The Kochava Data Science team has developed a toolset to identify potential sources of fraud and empower advertisers and networks to weed out the culprits. Kochava <a href=\"https:\/\/www.kochava.com\/fraud-console\/\">Fraud Detection<\/a> is the most robust toolset of its kind and given the nature of fraud being &#8220;an eternal game of whack-a-mole&#8221; the Data Science team is working to identify new patterns and leading indicators of fraud in the mobile space.\r\n\r\n<a title=\"AdXchanger | Mobile Fraud: It&#039;s Time to Start Paying Attention\" href=\"http:\/\/adexchanger.com\/mobile\/mobile-fraud-its-time-to-start-paying-attention\/\" target=\"_blank\" rel=\"noopener noreferrer\">Read the AdExchanger article on fraud here<\/a>. It is also reprinted below for your convenience.\r\n\r\n<hr \/>\r\n\r\nby\u00a0<a href=\"http:\/\/adexchanger.com\/author\/allison-schiff\/\" rel=\"author noopener\" target=\"_blank\">Allison Schiff<\/a>\u00a0\/\/\u00a0Tuesday, June 2nd, 2015 \u2013 12:45 am\r\n\r\n<img decoding=\"async\" src=\"https:\/\/adexchanger.comhttps:\/\/assets.kochava.com\/kochavacom\/uploads\/2015\/06\/mobilefraud.jpg\" alt=\"mobilefraud\" align=\"right\" \/>There\u2019s something fishy going on in China. According to mobile attribution company Apsalar, for every valid in-app purchase (IAP) made in China, there are 273 fraudulent ones.\r\n\r\nBut China isn\u2019t the only place with IAP problems. Taiwan sees 54 fake in-app purchases for every valid one, while Saudi Arabia clocks in at 24.6 and Israel and Hong Kong tie for 18. The digital goods were sold, but payment was never received, a fact Apsalar verified with both Google and Apple.\r\n\r\nIAP is just one of the new ways fraudsters are looking to game the mobile system.\r\n\r\nAs Forrester analyst Susan Bidel noted in a recent report titled &#8220;Fraud and Fat Fingers Distort the Mobile Advertising Landscape,&#8221; \u201cFraudsters not only apply techniques tested and proven in desktop advertising to the mobile web, but also fashion new strategies specifically to target the mobile app environment.\u201d\r\n\r\nOver the past year,\u00a0<a href=\"http:\/\/adexchanger.com\/online-advertising\/the-book-of-fraud\/\" target=\"_blank\" rel=\"noopener\">online click fraud and bot-generated traffic<\/a>\u00a0have become obsessive topics in the ad industry, but mobile hasn\u2019t factored too deeply into that conversation, and there\u2019s a reason for that \u2013\u00a0dollar bills.\r\n\r\nIn the\u00a0<a href=\"http:\/\/adexchanger.com\/online-advertising\/white-ops-and-ana-partner-to-see-whats-the-what-with-bots\/\" target=\"_blank\" rel=\"noopener\">words<\/a>\u00a0of White Ops CEO and co-founder Michael Tiffany, \u201cBad guys follow the money.\u201d As long as mobile ad spend remained nascent, fraudsters didn\u2019t appear all that motivated to diversify from their desktop cash cow.\r\n\r\nThat\u2019s changing. According to recent\u00a0<a href=\"http:\/\/www.emarketer.com\/Article\/Mobile-Will-Account-72-of-US-Digital-Ad-Spend-by-2019\/1012258\/1\" target=\"_blank\" rel=\"noopener\">research from eMarketer<\/a>, mobile ad spend is on track to reach $28.72 billion this year, accounting for 49% of all digital ad spending, a number forecast to hit $65.87 billion by 2019.\r\n\r\nTimur Yarnall, SVP of corporate development at comScore, did\u00a0not mince words: \u201cAny suggestion that mobile fraud is not an issue today is laughable.\u201d\r\n\r\nVideo CPMs might still beat mobile CPMs, said Yarnall, who co-founded MdotLabs, the cybersecurity startup comScore\u00a0<a href=\"http:\/\/adexchanger.com\/online-advertising\/comscore-acquires-mdotlabs-to-fight-cross-platform-fraudsters\/\" target=\"_blank\" rel=\"noopener\">acquired<\/a>\u00a0in August, \u201cbut the money in mobile is there and it\u2019s growing fast, which means people need to monitor it just as aggressively as they\u2019re monitoring desktop fraud now.\u201d\r\n\r\n<strong>Out Of Place<\/strong>\r\n\r\nThe fraudster\u2019s bag of tricks runneth over. Bidel\u2019s report cited bad traffic, domain laundering, in-app ad stacking, phantom apps \u2013 when a user clicks to download an app, only to find that the app doesn\u2019t exist but the click was recorded \u2013 mobile emulators and shady redirects, and incentivized install mislabeling as issues already plaguing the mobile ecosystem.\r\n\r\nBut\u00a0<a href=\"http:\/\/adexchanger.com\/ad-exchange-news\/fraudsters-locate-a-new-frontier\/\" target=\"_blank\" rel=\"noopener\">mobile location data<\/a>\u00a0spoofing is a particularly prime example.\r\n\r\n\u201cLocation is increasingly important on the mobile side for targeting and offline attribution purposes,\u201d said Michael Tuminello, director of product at video platform Innovid. \u201cBut mobile location data is frequently inaccurate due to the lack of standards and a complicated ecosystem.\u201d\r\n\r\nAdding GPS coordinates to a bid request ups the price, and in some cases it\u2019s legitimate, but a lot of the lat\/long information available on the open exchange is coming from players who have no business providing it.\r\n\r\nLocation spoofing isn\u2019t black and white, however, said Alec Greenberg, VP of media operations at Dstillery.\r\n\r\nFor example, when an app asks a user to share his or her location and that user declines, the app still gets some sort of data \u2013 albeit general information like, \u2018This person is in Brooklyn&#8221; \u2013\u00a0relayed from a local cell tower. Broad data like that is far less useful in terms of driving foot traffic than precise lat\/long data \u2013 it&#8217;s also not opt-in, considering in that case that the user had declined to share location data \u2013 but Greenberg isn&#8217;t convinced the players purveying it are necessarily always malicious rather than just opportunistic.\r\n\r\nBut the end result is the same and Dstillery isn\u2019t taking any chances.\r\n\r\n\u201cWe throw out 50% to 70% of all the GPS coordinates we see every day because they\u2019re questionable,\u201d Greenberg said. \u201cThat\u2019s a huge percentage.\u201d\r\n\r\n<strong>Dirty Tricks<\/strong>\r\n\r\nMuch of mobile fraud detection is about patterns. Take \u201cmean time to install\u201d (MTTI), a term coined by mobile analytics company Kochava to describe the average time it takes between when a user clicks to download an app and when that user launches it for the first time. A dating app generally has a low MTTI, sometimes just a few hours, whereas a finance app can have an MTTI of seven days or more.\r\n\r\nIf a large percentage of users coming from a certain subset of publishers within a specific ad network open a finance app within an hour, that\u2019s a clear indication that something isn\u2019t kosher.\r\n\r\n\u201cThere is a correlation between MTTI and the lookback window that an advertiser sets up to give credit to the network that drove the install,\u201d said Kochava CEO Charles Manning. \u201cThat\u2019s why it\u2019s important to establish a baseline MTTI so you can understand what a high-value user does and what their true intent is.\u201d\r\n\r\nApsalar noticed something similar when it examined the relationship between app-related clicks and conversions by geo. A country like Germany, for example, has a roughly 5% in-app conversion rate with nearly no click fraud to speak of. But in France it takes users 20% more clicks than users in Germany to convert, what Apsalar CEO Michael Oiknine referred to as an \u201coverclick rate.\u201d\r\n\r\nIn countries like India and Hong Kong, however, the overclick rate spikes astronomically. It takes users, or more likely bots, in those countries around 1,000% more clicks than users in Germany to reach the same conversion.\r\n\r\n\u201cSure, maybe people there are just clicking more,\u201d Oiknine said. \u201cBut to my mind, this kind of differential tells you that something is going on. To us it feels like a proxy for the level of fraud in the country.\u201d\r\n\r\nBut all it takes is a Google search to prove that mobile fraud is reaching an unfortunate maturity.\r\n\r\n\u201cType \u2018purchase web traffic\u2019 into your browser and you can see for yourself how many botnets are out there,\u201d Yarnall said. \u201cNow type in \u2018purchase mobile traffic\u2019 or \u2018purchase app downloads\u2019 and you\u2019ll get millions of results for people willing to sell. Some of those people will be honest and some are going to be really shady.\u201d\r\n\r\nIf you know what you\u2019re getting, that\u2019s one thing. But if you think you\u2019re buying a luxury sports car and all you\u2019re getting is a jalopy with a convincing new paint job, then it\u2019s fraud. That\u2019s how Kochava defines it, anyway.\r\n\r\n\u201cAny traffic that purports to be one thing and it actually something else \u2013\u00a0that\u2019s fraud,\u201d Manning said. \u201cIf you think you\u2019re buying non-incentivized traffic and there\u2019s incentivized &#8216;Candy Crush&#8217; traffic in there, it might not be the ad network\u2019s fault, but it is fraud.\u201d\r\n\r\nWhen Kochava detects an outlier or mislabeled blended traffic, it alerts the advertiser. From there, the advertiser can decide to take action or not.\r\n\r\n\u201cWe proactively observe what\u2019s going on and we alert the customer when we see it happening,\u201d Manning said. \u201cBut we don\u2019t just drop the click. At the end of the day, we\u2019re a measurement company, not the jury. How you deal with the information we give you as an advertiser is your thing.\u201d\r\n\r\nFraud, mobile or otherwise, is a moving target and will remain so, said Yarnall, and every industry stakeholder needs to share responsibility.\r\n\r\n\u201cYou\u2019re never going to see a level set for non-human traffic. When a scammer sees something working, they\u2019ll take it and run with it as far as they can go \u2013\u00a0and then they move on,\u201d Yarnall said. \u201cIt\u2019s like an eternal game of whack-a-mole. The perpetrators of fraud are always going to be there.&#8221;[\/vc_column_text][\/vc_column][\/vc_row]","protected":false},"excerpt":{"rendered":"<p>[vc_row type=&#8221;in_container&#8221; full_screen_row_position=&#8221;middle&#8221; scene_position=&#8221;center&#8221; text_color=&#8221;dark&#8221; text_align=&#8221;left&#8221; overlay_strength=&#8221;0.3&#8243; shape_divider_position=&#8221;bottom&#8221;][vc_column column_padding=&#8221;no-extra-padding&#8221; column_padding_position=&#8221;all&#8221;&#8230;<\/p>\n","protected":false},"author":1,"featured_media":9244,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[31,32,33],"class_list":{"0":"post-1663","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-press","8":"tag-charles-manning","9":"tag-data-science","10":"tag-fraud"},"_links":{"self":[{"href":"https:\/\/www.kochava.com\/ko\/wp-json\/wp\/v2\/posts\/1663","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.kochava.com\/ko\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.kochava.com\/ko\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.kochava.com\/ko\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.kochava.com\/ko\/wp-json\/wp\/v2\/comments?post=1663"}],"version-history":[{"count":7,"href":"https:\/\/www.kochava.com\/ko\/wp-json\/wp\/v2\/posts\/1663\/revisions"}],"predecessor-version":[{"id":45771,"href":"https:\/\/www.kochava.com\/ko\/wp-json\/wp\/v2\/posts\/1663\/revisions\/45771"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.kochava.com\/ko\/wp-json\/wp\/v2\/media\/9244"}],"wp:attachment":[{"href":"https:\/\/www.kochava.com\/ko\/wp-json\/wp\/v2\/media?parent=1663"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.kochava.com\/ko\/wp-json\/wp\/v2\/categories?post=1663"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.kochava.com\/ko\/wp-json\/wp\/v2\/tags?post=1663"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}