Certain high profile cases have been reported in 2013 and 2014 about big companies taking action against organized crime, committing digital ad fraud in both display advertising and search ads.
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Industry Actions Against Digital Ad Fraud Reported by Augustine Fou
1. Industry Actions Against
Digital Ad Fraud
Dr. Augustine Fou
http://linkd.in/augustinefou
acfou @mktsci .com
February 2014
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Augustine Fou
2. Microsoft Kills Zombie PCs
Armed with a court order and law enforcement help overseas, the team
took steps to cut off communication links to European-based servers
considered the mega-brain for an army of zombie computers known as
ZeroAccess.
Criminals for years had used the ZeroAccess "botnet," which combines
the power of more than 2 million hijacked computers—or bots—around
the world, to fraudulently bill some $2.7 million a month from online
advertisers, company investigators say.
Working With Law Enforcement, Microsoft Team Cuts Off
Servers for Zombie Computers Source: WSJ Dec 5, 2013
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Augustine Fou
3. LinkedIn Sues John Doe
Professional social networking site LinkedIn has filed a federal lawsuit against ten unspecified
individuals over the use of bots that stole personal data from the profiles of hundreds of thousands of
users.
According to the suit, which was filed Monday in the Northern California federal district court, the bots
were used to register thousands of fake LinkedIn accounts for the purpose of mining data from
legitimate accounts – a process known as scraping, which is prohibited by LinkedIn‘s user agreement.
The court documents also claim the fraudulent activity, which began last May, breaks state and federal
computer security laws as well as federal copyright law.
―Since May 2013, unknown persons and/or entities employing various automated software programs
(often referred to as ‗bots‘) have registered thousands of fake LinkedIn member accounts and have
extracted and copied data from many member profile pages,‖ LinkedIn said in its complaint.
―This practice, known as ‗scraping,‘ is explicitly barred by LinkedIn‘s User Agreement, which
prohibits access to LinkedIn ‗through scraping, spidering, crawling, or other technology or software
used to access data without the express written consent of LinkedIn or its Members.‘‖
LinkedIn Sues ―John Doe‖ Hackers Who Created Fake Accounts to
Scrape Member Data Source: BusinessWeek Jan 2014
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Augustine Fou
4. Spider.io Kills Chameleon Botnet
Chameleon Botnet
Date of discovery: 28 February, 2013
Known as: Chameleon Botnet
Discovered by: spider.io
Activity identified: Botnet emulates human visitors on select websites causing billions of display ad impressions to be served to the
botnet.
Number of host machines: over 120,000 have been discovered so far
Geolocation of host machines: US residential IP addresses
Reported User Agent of the bots: Mozilla/5.0 (compatible; MSIE 9.0; Windows NT 6.1; Trident/5.0) and Mozilla/5.0
(compatible; MSIE 9.0; Windows NT 6.1; WOW64; Trident/5.0)
Proportion of traffic that is botnet traffic from IP addresses of host machines: 90% (diluted by gateway IPs)
Number of target websites across which the botnet operates: at least 202
Proportion of traffic across the target websites that is botnet traffic: at least 65%
Number of ad impressions served to the botnet per month: at least 9 billion
Number of distinct ad-exchange cookies associated with the botnet per month: at least 7 million
Average click-through rate generated by the botnet: 0.02%
Average mouse-movement rate generated by the botnet: 11%
Average CPM paid by advertisers for ad impressions served to the botnet: $0.69 CPM
Monthly cost to advertisers of ad impressions served to the botnet: at least $6.2 million
Spider.io Stops Chameleon Botnet, which ―emulates human visitors on
select websites causing billions of display ad impressions to be served.‖
Source: Spider.io March 2013
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Augustine Fou
6. Motive
“Highly Lucrative, Profitable
The aggregate ad revenue for the
sample of 596 sites was an
estimated $56.7 million for Q3 of
2013, projecting out to $226.7
million dollars annually, with
average profit margins of 83%,
ranging from 80% to as high as
94%.‖
Source: Digital Citizens Alliance Study,
Feb 2014
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Augustine Fou
7. Opportunity
As a greater proportion
of ads are bought and
sold automatically and
by algorithm through ad
exchanges, it has
become far easier for
bad guys to ―sell‖ fake
traffic and impression
inventory to
unsuspecting, mainstrea
m brand advertisers.
Source: Digital Citizens
Alliance Study, Feb 2014
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Augustine Fou
9. Blacklisting Sites
Value
Exclude sites from
serving your ads
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Caveat
For every site excluded,
bad guys put up more
(because they don‟t have
to play by the rules).
Augustine Fou
10. Enforcing Viewability
Value
Caveat
Only pay for ads which
are viewable (i.e. above
the-fold)
Bad guys can defeat
―viewability‖ by stuffing ads
in hidden layers, all ―abovethe-fold”
Source: Spider.io May 2, 2013
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Augustine Fou
11. Bot Detection
Value
Caveat
Good guys use algorithms
to detect unusual
behaviors indicative of
bots (rather than humans)
It‘s an arms race between
good and bad; bots are more
sophisticated and can fake
mouse movements and keep
cookies.
Source: Spider.io March 2013
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Augustine Fou
12. Using CAPTCHAs
Value
Caveat
Captchas deter bots from
filling in forms and stealing
content and cookies.
Some bots can now solve some
captchas, most captchas don‘t
protect content pages.
Source: Solve Media Dec 31 2013
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―Startup called Vicarious
automatically solves
CAPTCHAs.‖ Oct 2013
http://bit.ly/1bFo9lZ
Augustine Fou
13. “The above countermeasures are all good, and
advertisers should continue using them. But they are
not enough. If the good guys fight the fight individually,
there is little chance they can overcome the entire
ecosystem of the bad guys. The good guys need to band
together into their own ecosystem and put the bad guys
on a „digital ad fraud equivalent to the National Sex
Offenders Registry‟.”
-- Dr. Augustine Fou
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Augustine Fou
14. Ad Fraud Forensics Process
Preliminary Scan
Sizing of
ad fraud
Forensic Analysis
Maintenance
• Technology Tools
• Statistical analysis
• Budget shifts
• Further optimization
Implementation
FREE
$$$
Preliminary analysis of
paid campaigns and
analytics to determine
magnitude of the ad
fraud impacting client.
Creating recommended
list of changes,
including list of sites to
exclude in each ad
channel.
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$
Subscribe to triangulated,
cross-industry database of
―ad fraud offenders‖ to
continuously update
blacklists and whitelists.
Augustine Fou
15. Dr. Augustine Fou – Digital Forensics
“I advise clients on optimizing
advertising across all channels. Using
advanced technical forensic techniques
and custom tchnology tools, we detect
and mitigate ad fraud and waste.”
FORMER CHIEF DIGITAL OFFICER, HCG (OMNICOM)
MCKINSEY CONSULTANT
CLIENT SIDE / AGENCY SIDE EXPERIENCE
PROFESSOR AND COLUMNIST
ENTREPRENEUR / SMALL BUSINESS OWNER
PHD MATERIALS SCIENCE (MIT '95) AT AGE 23
ClickZ Articles: http://bit.ly/augustine-fou-clickz
Slideshares: http://bit.ly/augustine-fou-slideshares
LinkedIn: http://linkd.in/augustinefou
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@acfou
Augustine Fou
16. Related Articles
Digital Ad Fraud Briefing
By: Augustine Fou December 2013
Fake YouTube Videos
By: Augustine Fou, December 2013
How Display Fraud Works
By: Augustine Fou, May 2013
Motive and Opportunity for Ad Fraud
By: Augustine Fou, February 2014
How Click Fraud Works
By: Augustine Fou, November 2013
Fake Facebook Profiles
By: Augustine Fou, Dec 2013
The Magnitude of Digital Ad Fraud
By: Augustine Fou, November 2013
Fake Twitter Accounts
By: Augustine Fou, August 2013
ROI Case for Solving Ad Fraud
By: Augustine Fou January 2014
Display Fraud 101 (video)
By: Augustine Fou, Feb 2014
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Augustine Fou