The mobile gaming industry has exploded over the past decade, now making up a huge part of the $100 billion global gaming market. Millions of players are hooked, and new games are coming to life nonstop. It sure is an exciting time to be in the business. However…as with any gold rush, there’s a dark side, and that is mobile ad fraud. 

In 2023, mobile ad fraud accounted for a staggering $80 billion in global losses. Yes, you read that right, unbelievable $80 billion.

Fake installs, click fraud, bot traffic, you name it. These tactics are causing major headaches when it comes to tracking, targeting, and converting. This isn’t just about cutting costs, it’s about staying competitive and protecting your hard-earned reputation.

The Price of Ad Fraud and Lost Chances

Let’s face it, mobile ad fraud is a financial nightmare for gaming studios. It’s like setting fire to your marketing budget and watching it burn. And this problem is getting worse. 

Fraudulent activities like fake installs, click fraud, and bot traffic divert marketing budgets that should be spent on real users. Instead of reaching genuine players, your advertising dollars are funneled into ghost accounts, manipulated clicks, or completely fake installs that don’t contribute to actual engagement. Meaning, while your budget is burning through these fraud schemes, the users you really need are nowhere to be found. This means you’re not only wasting money, you’re also losing out on potential lifetime value (LTV) from paying customers.  

And as the competition in the mobile gaming market continues to escalate, that waste becomes even harder to stomach. It’s like a double whammy, you’re burning cash, and you’re missing out on the actual players who could drive long-term revenue for your game.

Here’s an example. 

Take a look at a NASDAQ-listed mobile game developer who launched a major ad campaign for their new game, hoping to attract a large number of new players. He invested heavily in various traffic sources, expecting strong results. But when they analyzed the data, he realized something just wasn’t right. The CPI (cost per install) was way higher than expected, and engagement rates were a lot lower than we thought they'd be. Further investigation showed that a large portion of their installs, 80%, to be exact, were misattributed, and 25% of their traffic was deemed invalid. Much of this traffic came from fraudulent sources, like bots clicking on ads, fake installs inflating the numbers, and non-human traffic skewing the data.

The end result? The company ended up wasting $70k a month on installs that didn’t lead to real players, and the marketing spend didn’t lead to any long-term results. Talk about a costly mistake.

As ad fraud grows, it’s more important than ever to fight back and protect your ROI and the future of your game.

Typical Fraud Tactics in Mobile Game Advertising

Click Spamming

Click spamming is one of the most common types of mobile ad fraud.

The idea is to generate a large number of fake clicks, making it look like the ad is doing better than it actually is. And the scale of click spamming is massive, industry data shows that up to 30% of click-based campaigns can be wasted on fraudulent clicks. That’s a significant chunk of your ad spend going to nothing. For smaller studios, this can be especially devastating, as every dollar counts. 

Fake Installs

Next up is the fraud tactic that’s the equivalent of a vanity metric on steroids - fake installs. This is where fraudsters use bots or other methods to generate fake installs, inflating the numbers and making ad campaigns look way more successful than they actually are, too. That often fools advertisers into thinking their campaigns are creating genuine growth. Up to 20% of installs in some categories can be fake. That’s one in five installs that aren’t real users at all. 

Bots

These automated systems are responsible for much of the fraud we’ve already talked about, including click spamming and fake installs.  Bots are a huge issue in mobile ad fraud because they’re designed to mimic the behavior of real users, making them harder to detect. Typically, they’re located in high-fraud regions like Southeast Asia or Eastern Europe, where fraudulent activity is more common.

How Bots Work and Where They Hide

When it comes to mobile ad fraud, bots are the silent killers lurking in the shadows. They’re programmed to imitate human behavior, clicking ads, installing apps, even interacting with content like a real user would. 

And the big problem is, once you think that traffic is legitimate, you start making decisions based on false data, which can really throw off your entire marketing strategy.

So, how do you spot these bots? 

The key lies in looking for anomalous behavior. For example, if you see a huge spike in clicks but no corresponding installs or user engagement, that’s a red flag. Bots tend to click at a much higher rate than real users, and they don’t stick around to engage with your app. Other signs include erratic device usage patterns, like the same device ID being used across multiple geographic locations within short time frames. 

Bots also tend to have predictable patterns. For example, if you see the same actions repeated across multiple campaigns or a flood of clicks from regions that don’t align with your target audience, that’s another sign that something’s off.

As we’ve already pointed out, the origin of these bots seems to follow a geographic trend. The highest concentrations of fraudulent traffic tend to come from regions like Southeast Asia and Eastern Europe. But why these areas? Well, part of it comes down to lower regulatory standards and access to cheap labor for bot generations. Fraud rings in these regions can pump out thousands of fake installs or clicks for pennies, making it a lucrative business.

In some cases, the link between bot traffic and fake install rates is pretty clear.  There’s a clear spike in bot-driven traffic in specific regions, followed by a corresponding increase in fraudulent installs. This is particularly damaging to CPIs and CPAs, as it throws off your data and eats up your budget without giving you any real results.

We talked a bit more on ad fraud and identifying it in another article. 

Don’t Gamble with Your Budget: Solutions Against Ad Fraud

Fraud prevention can help you plug those holes and put your marketing dollars to good use. 

Machine learning is a game changer when it comes to spotting fraud. It analyzes patterns to automatically flag suspicious activity, like unusually high clicks from the same IP or traffic that doesn’t match typical user behavior. This saves you time and stops fraud in its tracks. 

On top of that, device fingerprinting acts like a digital ID for each user’s device, tracking unique identifiers like operating system and hardware specs. If multiple installs come from the same fingerprint and it’s a giant red flag for fake installs.

But technology alone isn't enough. Real-time monitoring is another crucial layer, with fraud detection platforms like Adjust, AppsFlyer, and Kochava letting you track traffic as it happens. As soon as fraud is flagged, these platforms can take action to block it and protect your campaigns.

On top of that, ad verification platforms like IAS and DoubleVerify make sure your ads are reaching the right audience and that your installs are legitimate. They cross-check impressions, clicks, and installs to match up with your targeting criteria, helping to clean up the mess that fraudsters leave behind.

Also, If you suspect something, companies like ours, which offer custom and clear mobile advertising solutions, can also give you advice on how to solve the problem, and make sure your installs are actual installs.

Real-World Tactics in Action

Supercell, known for its massive hits like Clash of Clans and Brawl Stars, has implemented robust anti-fraud measures to safeguard their ad campaigns. They use a combination of machine learning and real-time monitoring to detect and block fraudulent activity before it ever hits their marketing budget. This way, they make sure their ad spend is actually being used effectively.

Zynga, most popular for its social and mobile games such as FarmVille, Words With Friends, and Zynga Poker, uses device fingerprinting to combat fake installs. By tracking the unique identifiers of devices, Zynga ensures that their installs are legitimate, preventing fraudsters from inflating their numbers. This method has made it easier for them to trust their data and shield their marketing spend.

Talking about real-world tactics, we’ve also got a few up our sleeves that have saved our clients’ budgets from unnecessary waste. Firstly, our team at Z2A Digital stays in close contact with publishers, which helps us catch unusual patterns (like sudden traffic spikes) early, so they don’t turn into bigger problems. We also make sure we’re on the same page with our clients when it comes to fraud prevention, helping them shut down questionable channels early to avoid wasting ad spend. Lastly, one approach we swear by is diversifying ad channels, which helps reduce risk and makes it harder for fraudsters to manipulate the system. After all, you need the best of both worlds, advanced technology and personal oversight, to make sure every ad dollar works toward your goals.

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So, what’s next?‍

Looking ahead, the future of fraud detection in mobile gaming is looking bright. As tech keeps advancing, new solutions like AI algorithms and blockchain-based verification might make it even easier to spot and stop fraud once and for all. 

But for now, taking action is the key to keeping your campaigns running smoothly, staying efficient, and building trust with your audience.

It’s time to crush fraud and get back to what really matters - winning.

Attending the Games Forum Barcelona 2025?

Are you a gaming app developer or a publisher attending the Games Forum Barcelona conference? Interested in scaling your user acquisition or monetizing your traffic effectively?

Hadar, our account manager in charge of our gaming clients will be attenting Games Forum Barcelona on February 5th & 6th. Schedule a meeting with him and discover how Z2A Digital can help you power up your gaming growth. Don’t miss out—secure your spot now and let’s chart a winning course together!

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