ad fraud

Top 10 Advertisement Frauds Marketers Should Avoid

ByEditor

Digital advertising is a powerhouse for businesses, driving growth and connecting brands with audiences like never before. But with great opportunity comes great risk. Ad fraud is a silent thief, siphoning off budgets and skewing campaign results. In 2025, as programmatic advertising and AI-driven campaigns dominate, marketers must stay vigilant. Here are the top 10 advertisement frauds to watch out for—and how to protect your campaigns.

1. Click Fraud

Click fraud happens when bots or bad actors repeatedly click on pay-per-click (PPC) ads to inflate costs or drain budgets. Competitors might use this tactic to sabotage campaigns, while shady publishers boost their revenue. According to a 2024 report by Juniper Research, click fraud costs advertisers over $80 billion annually.

How to Avoid It: Use ad verification tools like DoubleVerify or Integral Ad Science to detect suspicious click patterns. Monitor your campaigns for unusual spikes in click-through rates (CTRs) from specific regions or devices. Implement frequency capping to limit ad impressions per user, reducing the impact of automated clicks.

2. Impression Fraud

Impression fraud involves generating fake ad impressions to inflate metrics. This often occurs on low-quality websites or apps that use bots to mimic human views. For instance, ads might load in hidden iframes or off-screen pixels, never reaching real users.

How to Avoid It: Partner with trusted platforms and demand transparency in ad placement. Use tools like Moat or Comscore to verify impressions. Check for anomalies, like high impression counts with low engagement, and prioritize premium publishers with verified traffic.

3. Bot Traffic

Bots account for nearly 40% of internet traffic, per a 2023 Imperva study, and they wreak havoc on ad campaigns. Bots mimic human behavior, generating fake clicks, views, or form submissions, which skew analytics and waste budgets.

How to Avoid It: Invest in anti-bot solutions like Distil Networks or Cloudflare. Analyze traffic sources for red flags, such as consistent session durations or repetitive behavior. Work with demand-side platforms (DSPs) that filter out non-human traffic using machine learning.

4. Ad Stacking

Ad stacking occurs when multiple ads are layered on top of each other in a single ad slot, but only the top ad is visible. Publishers charge for all impressions, even though users see just one ad.

How to Avoid It: Use viewability tracking tools to ensure ads are actually seen. Demand transparency from publishers about ad placement practices. Opt for programmatic platforms that enforce strict anti-stacking policies, like Google’s Display Network.

5. Domain Spoofing

In domain spoofing, fraudsters disguise low-quality or fake websites as premium ones to trick advertisers into bidding on their inventory. For example, a scammer might make a site appear as a reputable outlet like Forbes in an ad exchange.

How to Avoid It: Use ads.txt files to verify authorized sellers. Work with trusted SSPs (supply-side platforms) and DSPs that implement domain verification. Tools like Pixalate can help identify spoofed domains before you bid.

6. Cookie Stuffing

Cookie stuffing involves planting tracking cookies on users’ devices without their interaction, falsely attributing conversions to fraudsters. This is common in affiliate marketing, where scammers claim commissions for sales they didn’t drive.

How to Avoid It: Monitor affiliate programs closely and use attribution tools to verify user journeys. Set strict cookie expiration policies and audit partners regularly. Platforms like Impact or Rakuten Advertising offer robust fraud detection for affiliate campaigns.

7. Fake Installs

In mobile app advertising, fake installs occur when fraudsters use emulators or device farms to simulate app downloads. This inflates install metrics, making campaigns appear successful while delivering no real users.

How to Avoid It: Use mobile measurement partners (MMPs) like AppsFlyer or Adjust to track install sources and detect anomalies. Look for patterns like high install rates from a single IP or low post-install engagement. Work with reputable ad networks that prioritize fraud prevention.

8. Ad Injection

Ad injection involves unauthorized ads being inserted into websites or apps, often through browser extensions or malware. These ads replace legitimate ones, diverting revenue from advertisers and publishers.

How to Avoid It: Partner with platforms that monitor for ad injection, like The Media Trust. Use clean ad creatives and avoid third-party scripts that could introduce vulnerabilities. Regularly audit your ad placements to ensure they appear as intended.

9. Conversion Fraud

Conversion fraud inflates reported conversions through fake form submissions, purchases, or sign-ups. Bots or low-quality traffic sources often drive this, making campaigns look effective while delivering no real value.

How to Avoid It: Implement strict validation for conversions, like CAPTCHA or email verification. Use analytics to track user behavior post-conversion—real users engage differently than bots. Platforms like Google Analytics can help spot discrepancies in conversion funnels.

10. Geo-Masking

Geo-masking hides the true location of traffic, making it appear as if clicks or impressions come from high-value regions (e.g., the U.S.) when they’re from low-cost areas. This tricks advertisers into overpaying for low-quality traffic.

How to Avoid It: Use geo-targeting verification tools to confirm traffic origins. Analyze IP data for inconsistencies and prioritize DSPs with robust geo-filtering. Avoid overly cheap inventory, as it’s often a red flag for geo-masked traffic.

Why Ad Fraud Matters

Ad fraud doesn’t just burn budgets—it erodes trust and distorts campaign insights. A 2024 study by Statista estimated global ad fraud losses at $100 billion, a number that grows as fraudsters leverage AI to create sophisticated scams. For marketers, especially those in programmatic advertising, staying proactive is critical. Every dollar wasted on fraud is a dollar not reaching your audience.

How to Stay Ahead

  • Partner Wisely: Work with reputable ad platforms, DSPs, and SSPs that prioritize fraud prevention. Transparency is non-negotiable—demand clear reporting on traffic sources and ad placements.
  • Leverage Technology: Tools like Integral Ad Science, DoubleVerify, or Pixalate offer real-time fraud detection. Machine learning can spot patterns humans miss, like subtle bot behaviors or traffic anomalies.
  • Educate Your Team: Train your marketing team to recognize fraud signs, from unnatural CTR spikes to suspiciously low engagement rates. Knowledge is your first line of defense.
  • Audit Regularly: Review campaign data weekly for red flags. Cross-check metrics across platforms to ensure consistency. If something feels off, it probably is.
  • Stay Updated: Ad fraud evolves fast. Follow industry blogs like AdExchanger or IAB to keep up with new threats and solutions.

Final Thoughts

Navigating the world of digital advertising in 2025 requires vigilance. Fraudsters are crafty, but with the right tools and strategies, marketers can protect their budgets and maximize ROI. By understanding these top 10 ad frauds—click fraud, impression fraud, bot traffic, ad stacking, domain spoofing, cookie stuffing, fake installs, ad injection, conversion fraud, and geo-masking—you’re better equipped to safeguard your campaigns. Stay sharp, prioritize transparency, and let your ads work their magic on real audiences.

At Adsarge, we’re committed to helping marketers combat fraud with targeted, transparent ad solutions. Our platform uses advanced analytics to ensure your campaigns reach genuine users, driving measurable results. Let’s build trust and growth together—contact us to learn more.