What is Ad Fraud? Answering The Most Asked Questions About Ad Fraud
Ad fraud is an evolving threat and no longer linear. It is becoming more advanced everyday with AI and automation also contributing towards speed and scale. What once looked like normal bot activity has now become far more sophisticated, subtle, and harder to distinguish from genuine user behavior. This sophistication of ad fraud raises a lot of questions in the minds of advertisers, marketers, publishers, brand owners, or anyone involved in the digital advertising ecosystem for that matter. Hence, the purpose of this blog. To ensure you get answers to the most asked questions about ad fraud in one place. We will talk about everything from what is ad fraud to knowing how to respond to it with clarity and confidence. Let’s get started. What is ad fraud? Ad fraud is an attempt to generate fake, invalid traffic, or low-quality interactions on digital ads to manipulate campaign results. These interactions often appear real on the surface, such as impressions, clicks, leads, and installs, but actually come from bots, emulators, or click farms. By using various ad fraud techniques, fraudsters exploit payment models like CPM, CPI, or affiliate commissions. As a result, advertisers lose their ad budget on fake trafficand end up optimizing campaigns based on misleading metrics, leading to campaign inefficiency. What are the different types of ad fraud? Ad fraud shows up in different forms depending on the campaign objective, platform, pricing model, and even targeting. In case of web campaigns, it commonly appears as fake impressions, invalid clicks, or invalid traffic to exhaust budgets and inflate engagement metrics. In case of mobile app campaigns, ad fraud is more deeply tied to attribution and installs. Fraudsters exploit CPI and CPA models by generating fake installs, click injections, or install hijacking tactics that claim credit for users who would have installed organically. In case of affiliate campaigns, it takes the form of fake leads, fake installs, incentivized traffic, cookie stuffing, or unauthorized brand bidding, etc. The intent is to claim payouts without delivering genuine results. This results in poor partner performance, reduced ROI, and loss of trust in affiliate ecosystems. Get your hands on our ad fraud guide to learn more about different types of ad fraud techniques in detail. Who is affected by ad fraud? Everyone in the digital ecosystem is affected by ad fraud. Marketers and advertisers suffer direct budget losses and are left explaining poor performance and low-quality leads. Legitimate publishers face unfair competition from fraudulent inventory, revenue loss, reputational risk, and even potential network penalties. Agencies struggle with compromised data that weakens optimization and client trust. Ad networks and platforms risk credibility, higher operational costs, and compliance challenges. Affiliate managers deal with incentive-driven, low-intent users that inflate numbers while damaging long-term brand perception. How do I know if my campaigns are being affected by ad fraud? Ad fraud has moved beyond obvious bot techniques that were easier to identify. It has now evolved to mimic real user behaviour. However, to identify if your campaigns are being affected by ad fraud, you must notice the following signals: Sudden spikes in traffic or clicks without a proportional increase in conversions or meaningful engagement High engagement metrics but low downstream actions such as purchases, sign-ups, or app usage Repeated interactions from similar device types, locations, or behavioral patterns that appear “too consistent” Abnormally short or uniform session durations that don’t reflect natural browsing behavior Leads or installs that fail validation checks, show no post-conversion activity, or quickly drop off Campaign performance improving on dashboards while business outcomes continue to decline Individually, these signals may seem harmless, but they clearly indicate fraudulent or low-quality traffic is manipulating campaign performance. What is click fraud? Click fraud is a type of ad fraud technique where bots are used to generate fake or automated traffic clicks on ads without any real interest in the product or service being promoted. These clicks are created to look like genuine user interactions, making them difficult to identify at first glance. These fraudulent clicks also trigger actions like app installs, conversions, or website visits, further masking their true nature. In pay-per-click (PPC) advertising, publishers earn revenue every time an ad is clicked. Fraudsters exploit this model by creating fake websites or placements and artificially inflating click volumes using bots. As a result, advertisers end up paying for invalid clicks that deliver no real value, while fraudulent publishers profit from traffic that was never genuine in the first place. I often see high clicks but low conversions on my campaigns. Is this ad fraud or just poor performance? High clicks with low conversions do not always mean ad fraud. In many cases, poor performance can be caused by factors such as ineffective creatives, incorrect targeting, slow or confusing landing pages, or a mismatch between the ad message and the offer. However, ad fraud becomes a strong possibility when certain patterns start to appear. Sudden increase in clicks without any changes in targeting, creatives, or budgets. Clicks with little to no intent-driven actions such as form fills, purchases, or meaningful engagement. Clicks coming from repeated IP addresses or devices. The key is to look at behavioural signals to identify click fraud. Single metrics can be misleading, but consistent patterns of activity without business outcomes often signal something deeper than normal performance issues. Do ad platforms like Google and Meta already block ad fraud? How to prevent invalid traffic from Google? Yes, ad platforms like Google and Meta do have built-in systems to detect and block ad fraud. They do filter out a significant amount of invalid activity. However, these platforms operate in a closed ecosystem as walled gardens, hence posing limitations. This means advertisers have limited visibility into how traffic is generated, how users behave beyond surface metrics, and how fraud decisions are made. This lack of transparency creates blind spots. Fraudsters exploit these gaps using bots, click farms, and automated scripts that mimic real user behavior closely enough to bypass platform-level checks. As a result, some fraudulent
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