Why you need fraud prevention

With nearly 30% of global ad fraud losses attributed to mobile ads, this segment remains the most heavily impacted in the digital ecosystem.  This trend highlights how increasingly sophisticated fraud schemes are compromising advertisers’ budgets and campaign performance. Addressing fraud is a strategic necessity for marketers aiming to protect their investments, keep data sets clean, and maintain a competitive edge.

In this article, we explore the major types of mobile ad fraud, why prevention matters, and how Adjust’s innovative solutions safeguard your campaigns.

What is mobile ad fraud?

Mobile ad fraud occurs when fraudsters manipulate advertising technology to deceive advertisers, publishers, or partners, draining their budgets. This widespread issue takes many forms and impacts all apps, from gaming to e-commerce and banking. Effective fraud detection and prevention are critical for sustaining growth and safeguarding budgets. That’s why it’s vital to have a mobile measurement partner (MMP) committed to fighting fraud and continually developing measures against it.

Types of mobile click fraud

There are four main types of mobile ad fraud—click spam, click injection, SDK spoofing, and fake installs.

Types of mobile ad fraud

Click spam

Click spam is a type of mobile ad fraud in which fraudsters generate unauthorized clicks to falsely claim credit for user installs.

Click spam begins when a user lands on a compromised mobile webpage or an app containing a misused SDK to trigger uninitiated clicks. From there, the fraudsters can employ several different methods.

Methods of click spam:

  • A mobile web page executes mobile click fraud without the user’s intent or knowledge by running ads in the background.
  • The spammer can click in the background while the user engages with the app, making it look like the user has interacted with an advertisement.
  • The fraudster can generate clicks at any time if they use an app that is simply running in the background 24/7 (e.g., launchers, memory cleaners, battery savers, etc.).
  • The fraudster could send impressions-as-clicks to make it look like a view has converted into an engagement.
  • The spammer could blatantly send clicks to tracking vendors from made up or collected device IDs.

In the end, they all share the same goal: false engagements.

The impact of click spam

Click spamming is particularly harmful because it misattributes both organic and legitimate traffic from paid sources. When unchecked by a fraud prevention system, these false attributions are credited to fraudulent channels, allowing fraudsters to claim credit for installs. If not addressed early, click spam can corrupt an app’s entire attribution data, misleading advertisers and wasting valuable resources. Unfortunately, there are other serious consequences: 

  • Miscalculating organic installs:  Click spam leads to the miscalculation of organic user data, skewing cohort analyses and causing the cannibalization of organic marketing efforts, such as branding and press outreach, by fraudulent activity.
  • Misinformed UA strategies: False attributions from click spam cause advertisers to overinvest in channels that appear to perform well due to fraud. For example, if an advertising network falsely claims to have high-performing organic users, marketers might allocate more of their budget to that channel. This creates a cycle where advertisers repeatedly pay for users they would have acquired organically or through other channels.
  • Neglecting more reliable channels: Fraud-free channels often appear less effective than those inflated by fraudulent conversions. This misrepresentation diverts budgets from reliable channels, causing advertisers to miss potential return on investment (ROI).

 

Click injection

Click injection is a sophisticated form of click spamming unique to Android devices. Fraudsters use an app to monitor when other apps are downloaded on a device and trigger engagements before an installation is completed (but before the app is opened). By timing their fraudulent clicks perfectly, they claim credit for installs, poaching both organic users and those acquired through legitimate advertising channels.

In short, click injection fraudsters use an app to inject an engagement at just the right time to get the cost per install (CPI) payouts or cost per acquisition (CPA) payouts. This creates systematic inaccuracies, leading advertisers to invest in underperforming and ineffective channels, diverting money from better-placed and better-designed campaigns.

SDK spoofing

SDK spoofing, also known as traffic spoofing or replay attacks, occurs when fraudsters utilize real device data to create legitimate installs or clicks.

Fraudsters exploit vulnerabilities in the SSL encryption communication between a tracking SDK and its backend servers. By intercepting and analyzing URL calls that correspond to app actions, they reverse-engineer the process to simulate ad clicks, installs, and other in-app engagements. Once successful, they can replicate these activities indefinitely.

Fake installs

This method of mobile ad fraud involves fraudsters creating fake app installs, conversion events, and other types of engagement. Enter device farms and fake installs

  • Manual device farms: Previously common worldwide, these involve workers manually operating rows of smartphones to simulate installs and interactions. Although declining due to advancements in detection, they remain a concern in less-regulated markets.
  • Intelligent device farms: There are also intelligent device farms pre-programmed with automatic actions that allow fraudsters to fake installs and other in-app user activity without requiring human input. These farms are harder to detect due to their efficiency and scale.
  • Emulated devices: A program or device that allows a computer to behave as another device, most often a mobile device, is a device emulator. Fraudsters can use device emulators to steal marketers’ ad spend with falsified installs and in-app activities.

By using various device types with limited ad tracking enabled, frequently resetting advertising IDs to create unique profiles, and masking their actions with anonymized IP addresses, they make fake installs and engagements appear legitimate, making detection challenging. This is where mobile fraud prevention comes in.

What is mobile fraud prevention?

Mobile ad fraud prevention utilizes advanced tools and techniques to detect, block, and prevent fraudulent activities. Given fraudsters' diverse tactics, prevention systems must be equally adaptive and innovative, enabling mobile marketers to mitigate risks effectively—even before they impact campaigns.

Let’s review the five advantages of fraud prevention that make the solution a critical investment.

  1. Saved budgets: Fraud prevention stops your marketing campaign budget from being spent on traffic that leads to a dead end. With campaign spending reaching the thousands or sometimes millions, ensuring your money is safe is paramount. Fraud prevention provides that security.
  2. Clean data: Fraud skews critical performance metrics, leading to poor decision-making and ineffective campaign strategies. For instance, imagine Network A shows a higher conversion rate than Network B, with users appearing to stay engaged longer. At first glance, it seems logical to allocate more of the budget to Network A. However, without fraud prevention, it’s impossible to determine whether Network A’s traffic is genuine or inflated by fraudulent activity. Fraud prevention systems remove fraudulent data, ensuring advertisers can rely on accurate metrics to optimize campaigns, analyze user behavior, and set realistic key performance indicators (KPIs)
  3. Identify better options: By filtering out fraudulent traffic, fraud prevention systems help advertisers identify trusted networks and partners. This enables marketers to focus on traffic sources that drive real value, improving the overall effectiveness of their campaigns while avoiding risky or low-quality sources.
  4. Secure brand equity: Data security is a top priority across industries, especially in financial services, where breaches carry severe consequences. As regulations like GDPR, CCPA, and COPPA evolve, brands face growing pressure to safeguard user data and ensure compliance. That’s why robust fraud prevention systems, encryption protocols, and compliance measures are essential to protecting data and preserving reputation.
  5. Boosts competitive advantage: Advertisers using fraud prevention systems are better positioned to outperform competitors by acquiring high-quality users and optimizing their ad spend. The app that filters has a more efficient budget allocation, better audience targeting, and sustainable growth.

Why must an attribution provider fight mobile ad fraud?

MMPs like Adjust play a pivotal role in maintaining the integrity of the app ecosystem (described in detail here). Acting as intermediaries between networks and app companies, MMPs are uniquely positioned to combat fraud. Here’s why their role is crucial:

  • Unbiased mediation: Not all networks prioritize fraud prevention; some may even knowingly allow fraudulent traffic. MMPs analyze traffic flows impartially, ensuring only valid engagements and installs are attributed.
  • Advanced detection and prevention: Networks lack access to the comprehensive data sets MMPs manage. For example, sophisticated fraud techniques, like SDK spoofing, can bypass network-level checks but are detected by MMPs.
  • Protecting first-party data: Fraud directly impacts MMPs by compromising the quality of first-party data advertisers rely on.  By eliminating fraudulent activity, MMPs protect data integrity and uphold their clients’ reputations.

Unlike networks, which may have conflicting interests, MMPs have no incentive to tolerate fraudulent activity. Their role as unbiased arbiters is critical to maintaining the health of the app ecosystem.

While some external providers, known as fraud detection vendors, also offer anti-fraud solutions, their scope is often limited. MMPs like Adjust provide comprehensive fraud prevention capabilities, addressing fraud at its core.

How Adjust identifies and addresses mobile ad fraud

Adjust provides complete transparency, allowing advertisers to monitor threats and evaluate partner performance effectively.

Let’s dive deeper into how we address each type of mobile ad fraud.

Types of mobile ad fraud Adjust fights

Distribution modeling to combat click spam

Advertisers can catch click spamming by looking for a simple pattern. At Adjust, we identify click spam by analyzing click to install time (CTIT) distributions. Genuine traffic typically shows a natural pattern, where most installs occur within the first hour after an ad click, followed by a rapid decline. In contrast, click spamming exhibits a flat or random distribution because spammers generate clicks without genuine user engagement. This discrepancy allows advertisers to detect and filter out fraudulent traffic before attribution occurs.

Adjust employs distribution modeling to automate this process, a system that identifies and rejects click spam through two key methods. The first method, hyper-engagement filtering, focuses on spotting high-frequency clicks sent at recurring intervals. Fraudsters use these tactics to create a "last-click" attribution close to an organic install. Adjust flags these repetitive patterns and removes them, ensuring installs are attributed to legitimate sources or organic traffic.

The second method, distribution outlier analysis, examines CTIT patterns to detect inconsistencies. Research shows that over 85% of installs from legitimate traffic occur within the first hour after a click. Fraudulent traffic, however, lacks this correlation and spreads conversions across the attribution window. Adjust rejects these outliers, attributing installs to the appropriate source or marking them as organic.

Click injection filter to tackle click injection

Adjust combats click injection fraud with click injection filtering, leveraging timestamps to maintain accurate attribution data. For installs from the Google Play Store and Huawei AppGallery, Adjust uses referrer APIs to compare engagement times with two critical timestamps:

  • Install_begin_time: Engagements occurring after this timestamp are flagged as fraudulent.
  • Install_finish_time: A second check ensures no fraudulent clicks are recorded after installation.

For installs outside these app stores, where referrer APIs are unavailable, Adjust relies on the install_finish_time timestamp to identify and reject fraudulent engagements. This ensures all illegitimate attributions are effectively filtered, regardless of the app store source.

Rejected attributions are transparently reported. Fraudulent installs appear as rejected installs; click injection (RI CI), and reattributions as rejected reattributions: click injection (RR CI). These rejected actions are either reassigned to legitimate sources or categorized as organic if no valid engagement exists.

By combining deterministic timestamps, referrer APIs, and clear reporting, Adjust ensures accurate attribution data while protecting ad budgets from fraudulent activity.

SDK Signature to fight SDK spoofing

Adjust combats SDK spoofing with our SDK Signature, the most secure SDK on the market. Featuring custom encryption keys, unique cryptographic libraries, and bi-annual updates, it ensures unmatched protection against spoofing attempts by verifying all requests and rejecting unsigned or invalidly signed data.

Adjust also provides real-time fraud rejection callbacks and detailed reports, categorizing flagged traffic under untrusted devices or suspicious installs. After a transition period of two attribution windows (e.g., 14 days for a 7-day window), advertisers can enable signature validation to ensure complete protection without disrupting attribution accuracy.

The anonymous IP filter to reject fake installs

Analyzing IP addresses can identify fake installs from device farms and emulators. Fraudsters often route this traffic through proxies, VPNs, or data centers to obscure its origin. Adjust’s anonymous IP filtering cross-checks all installs and reattributions against MaxMind’s anonymous IP database. Installs linked to anonymizing services, such as VPNs, Tor exit nodes, or data centers, are flagged as untrusted devices, isolating fraudulent activity from legitimate data.

This filtering prevents most fraudulent installs from entering your data set, preserving data integrity. Rejected installs and reattributions are transparently reported with metrics such as:

  • Rejected installs: anonymous IP (RI AIP)
  • Rejected reattributions: anonymous IP (RR AIP)

This system ensures advertisers use clean, actionable attribution data for effective decision-making.

What sets Adjust apart in fraud prevention?

Adjust’s fraud prevention solutions empower advertisers to protect their data and budgets with confidence. Unlike after-the-fact detection systems, Adjust proactively stops fraud before it distorts data or impacts budgets. This approach enables advertisers to make informed decisions based on clean, actionable attribution data.

Clients like MyTona and Viber have already seen the benefits of Adjust’s solutions, reducing fraud rates to less than 1% and saving up to 10% of marketing budgets, respectively. These results showcase Adjust’s ability to deliver measurable outcomes across diverse industries.

With real-time fraud rejection callbacks, we give you instant insights into potential threats, helping you maintain trust with your network partners. This transparency strengthens relationships within the app ecosystem and fosters a collaborative approach to combating fraud.

At Adjust, fraud prevention is more than a feature—it’s a responsibility.

Ready to safeguard your campaigns with state-of-the-art fraud prevention? Talk to us today!

Be the first to know. Subscribe for monthly app insights.

Keep reading