June 15, 2024

Fraud Traffic Detection And Different Types Of Fraud Traffic

Fraud detection is a collection of procedures and investigations that assist businesses in detecting and eliminating fraudulent activity. Online advertising companies must help organizations eradicate any harmful bots that can negatively impact the performance and ROI of digital ad campaigns. These companies collaborate closely with advertising companies to protect them from fraud traffic by employing techniques such as IP address tracking, browser fingerprinting, and machine learning algorithms. These methods help fraud traffic detection companies identify the patterns of fraudulent behavior and eliminate them.

Types of fraud traffic

Below is a list of a few typical fraud traffic kinds that fraud detection organizations have identified:

  1. Click fraud: Click fraud is a form of online advertising fraud that occurs when a person or automated program clicks on an online advertisement to generate fraudulent pay-per-click revenue. The goal of click fraud is to artificially inflate the number of clicks on an ad, which can result in the advertiser paying more than they should for their ad campaign.
  2. Impression fraud: This type of fraud occurs when a fraudulent actor uses various methods to artificially inflate the number of ad impressions, clicks, or conversions on an advertising campaign. This results in the advertiser paying for ad traffic that is not done by real users and can significantly impact an advertising campaign’s return on investment (ROI). The difference between click fraud and impression fraud is that the former generates revenue via the pay-per-click method. In contrast, the latter increases the cost of an advertising campaign for the advertiser.
  3. Conversion fraud:  It refers to the fraudulent practice of artificially inflating the number of conversions on an online advertising campaign. It is done by using bots or other means to simulate real user behavior and complete actions such as filling out forms or making purchases. Conversion fraud can also occur when fraudulent actors use stolen credit card information to make purchases or create fake accounts to generate conversions.
  4. Bot traffic: It refers to fraud that occurs when a person or an automated person uses bots to increase the website’s traffic and ad impressions.
  5. Domain spoofing: This fraud occurs when a fake domain is used to impersonate a legitimate website and generate fraudulent ad revenue.
  6. Ad stacking: This is a form of fraud when multiple ads are placed on top of each other, creating the false impression of increased ad inventory.
  7. Incentivized traffic: It refers to fraud where incentives such as cash or gift cards are used to drive traffic to the online advertisement.
  8. Arbitrage: This fraud activity occurs when a person or an automated program takes advantage of discrepancies in the ad prices on different networks to generate fraudulent revenue.

Above are some of the types of fraud that fraud traffic detection companies detect. These companies help advertising companies protect their finances from bots and other automated programs. It is essential to protect the advertisement from the above-unwanted clicks. There are many fraud detection companies available that help the user by saving money on unwanted traffic.