DV Uncovers New Large-Scale Audio Ad Fraud Scheme that Spoofed Over 500,000 Devices in March 2024
07 May 2024 - 10:00PM
Business Wire
DoubleVerify Fraud Lab discovers that, for the
first time, smart audio speakers were spoofed by fraudsters
DoubleVerify ("DV"), a leading software platform for digital
media measurement, data, and analytics, today announced the
discovery of “FM Scam,” the latest audio fraud scheme to date that
was identified and mitigated by DV’s Fraud Lab using a proprietary
combination of AI-powered technology and human review.
FM Scam represents the second significant global scheme
targeting audio spending, emerging shortly after the DV Fraud Lab
protected advertisers from BeatSting, the first major invalid
traffic (IVT) scheme aimed at audio traffic. During the peak of
both schemes, the combined financial impact on unprotected
advertisers exceeded $1 million in spend monthly.
FM Scam perpetrators falsify audio traffic using dedicated
servers. They also spoof a wide range of devices typically used for
playing audio content. This tactic enables fraudsters to blend
their invalid traffic with legitimate traffic in attempts to remain
undetected. DV estimates that the fraudsters behind the scheme
spoofed over 500,000 devices, including mobile phones, tablets,
connected TV (CTV) devices, audio players, smartwatches and, for
the first time, even smart speakers.
Fraudsters auction their invalid traffic through supply-side
platforms (SSPs), exchanges and ad networks. DV’s impact analysis
indicates that FM Scam generates up to 100 million ad requests
monthly. In addition to defrauding advertisers, the fraudsters also
are impacting the yield of quality audio sellers by siphoning money
away from legitimate audio channels.
“Audio is rapidly becoming a lucrative target for fraudsters,”
said Jack Smith, Chief Innovation Officer at DoubleVerify. “The
range of players and devices used to stream audio content sets this
environment apart from other media types. Fraudsters tend to focus
on emerging media, like audio, that attracts advertising
investments but lacks comprehensive measurement standards.”
FM Scam further blends in with legitimate traffic by mimicking
the behavior of a typical continuous ad session. Unlike BeatSting,
which switches between devices after generating a certain number of
impressions, FM Scam creates longer, uninterrupted sessions. This
randomizes the traffic pattern to appear more human-like, as
opposed to delivering a consistent, fixed amount of impressions
across devices.
When FM Scam emerged, the Fraud Lab quickly tied IP addresses
used by the attack to a CTV scheme first detected in 2019. Some IPs
were also associated with various malicious activities, including
the spread of malware. The DV Fraud Lab immediately mitigated FM
Scam’s attacks and has been continuously shutting down new variants
of this scheme leveraging a proprietary combination of AI-powered
technology and human review.
DV’s Fraud Lab — powered by a dedicated team of data scientists,
mathematicians and analysts — performs ongoing detection and
analysis of new types of digital ad fraud to uncover the latest
schemes as they occur. Through continuous analysis, scenario
management and research, the Fraud Lab pinpoints the sites, apps
and devices responsible for fraudulent activity and updates
protection for DV clients in real time.
For more information about the scheme, please visit
www.doubleverify.com.
About DoubleVerify
DoubleVerify (“DV”) (NYSE: DV) is the industry’s leading media
effectiveness platform that leverages AI to drive superior outcomes
for global brands. By creating more effective, transparent ad
transactions, DV strengthens the digital advertising ecosystem,
ensuring a fair value exchange between buyers and sellers of
digital media.
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Media Contact: Chris Harihar chris@crenshawcomm.com
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