The advertising industry is facing a growing threat from sophisticated ad fraud schemes, enabled by the increasing adoption of generative AI. According to a report by DoubleVerify, generative AI has contributed to a 23% growth in new fraud schemes in 2023, leading to a 58% increase in ad fraud on streaming platforms. The report analyzed 1 trillion impressions for 2,000 brands in 100 markets around the world and found evidence of a 269% increase in existing bot fraud schemes. Generative AI has made it easier for fraudsters to falsify data patterns, create fake reviews, and publish new apps and websites, making it harder to detect fraudulent traffic.
The report highlights two examples of scams using generative AI, FM Scam and CycloneBot, which have been used to spoof devices and fake ad requests, costing advertisers millions of dollars. The findings are concerning, as AI-generated content is becoming more prevalent, and advertisers are struggling to keep up with the evolving fraud schemes.
The report’s findings are not surprising to privacy experts and ad fraud researchers, who have been warning about the potential risks of generative AI in enabling ad fraud. The issue is not only a problem for advertisers but also for publishers, as it funnels money away from legitimate traffic. The use of generative AI in ad fraud has also raised concerns about misinformation and disinformation, as online advertising can fuel misinformation by bad actors.
The report’s findings highlight the need for increased transparency and accountability in the advertising industry, as well as the need for more effective measures to combat ad fraud.
