Home Mobile Does Audience Network Have a Fraud Problem? Facebook Sues Two Developers For Click Injection

Does Audience Network Have a Fraud Problem? Facebook Sues Two Developers For Click Injection

SHARE:

The news: Facebook is suing two shady developers for using Audience Network to gin up fake clicks on Facebook ads.

What isn’t news: Audience Network, which advertisers use to extend their Facebook campaigns to third-party sites and apps, can be a conduit for ad fraud and fake traffic.

The developers, Hong Kong-based LionMobi and Singapore-based JediMobi, allegedly installed malware on users’ phones that simulated real people clicking on ads, generating payouts from Facebook. Aka, click injection.

Facebook detected the fraud as part of its “continuous efforts to investigate and stop abuse by app developers and any abuse of our advertising products,” Jessica Romero, Facebook’s director of platform enforcement and litigation, said Tuesday in a blog post.

LionMobi and JediMobi have been banned from Audience Network and Facebook refunded impacted advertisers in March.

Click injection is a fairly common form of ad fraud, and “done right, fraudsters can literally make millions of dollars monthly, essentially printing money,” said John Koetsier, VP of insights at Singular.

It works like this: Fraudulent developers get their apps installed on as many phones as possible – in this case, both developers peddled their apps in the Google Play store – and insert ad network SDKs into the apps.

From there, they generate fake traffic, fake users, fake activity, fake ad viewing and fake clicks in their apps, while collecting money for those ad views from ad networks such as Audience Network.

But ad networks also make money from these schemes, even though they’re not the ones perpetrating the fraud. Ad networks and their publisher partners get paid by selling ad impressions and producing clicks, which provides fertile ground for manipulation.

“The clicks make it look like people ‘engaged’ with the ads, which in turn causes the advertiser to spend more money buying those ad impressions,” said independent fraud researcher Augustine Fou. “Sadly, clicks don’t necessarily translate into sales or actual business outcomes for advertisers.”

Facebook ads that appear on its owned-and-operated properties work really well, Fou said. Put another way, that means low volume, highly targeted ads are effective.

Subscribe

AdExchanger Daily

Get our editors’ roundup delivered to your inbox every weekday.

But if marketers turn on Audience Network for more reach, their ads appear on sites and apps outside of Facebook, and that can expose their budgets to ad fraud and click fraud.

As to why Facebook filed this lawsuit now, one can only speculate. Facebook did not respond to a request for comment.

It’s unclear how long Facebook knew about this particular scheme or how many other developers are abusing the platform. What is clear, though, is that Facebook doesn’t want to get dinged for sitting on its hands a la Cambridge Analytica, and so it’s being proactive.

And Facebook isn’t the only party starting to take matters into its own hands. In June, Uber brought suit against five ad networks – Hydrane SAS, BidMotion, Taptica, YouAppi and AdAction Interactive – for wasting tens of millions of dollars to buy fake, nonviewable ads.

Must Read

Early Adopters Are Snapping Up Attention-Based Inventory Before Everyone Else Drives Up The Costs

Current ad pricing often doesn’t correlate to a site’s attention score, which means there’s an arbitrage opportunity for buyers and resellers.

Viant Acquires Data Biz IRIS.TV To Expand Its Programmatic CTV Reach

IRIS.TV will remain an independent company, and Viant will push for CTV platforms to adopt its IRIS ID to provide contextual signals beyond what streamers typically share about their ad inventory.

Integral Ad Science Goes Big On Social Media As Retail Ad Spend Softens In Q3

Integral Ad Science shares dropped more than 10% on Wednesday, after the company reported lackluster revenue growth and softened its guidance for the Q4 season.

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters
Comic: Gen AI Pumpkin Carving Contest

Meet Evertune, A Gen-AI Analytics Startup Founded By Trade Desk Vets

Meet Evertune AI, a startup that helps advertisers understand how their brands and products appear in generative AI search responses.

Private Equity Firm Buys Alliant As The Centerpiece To Its Platform Dreams

The deal is a “platform investment,” in which Inverness Graham sees Alliant as a foundation to build on, potentially through further acquisitions.

Even Sony Needed Guidance For Its First In-Game Ad Campaign

In-game advertising is uncharted territory even for brands like Sony Electronics that consumers associate with gaming.