Integral Ad Science Digital Ad Fraud Presentation

Digital Fraud What’s all the fuss about?

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Fraudulent Impressions:

Source: Integral Ad Science based on ~80 bn impressions/month

Total Advertising: 14%

In 2013 over $6 billion dollars were pocketed by fraudsters!

An Advertising Industry Epidemic: Everyone is affected

Exchanges: 13%

Networks: 15%

Publisher Direct: 2%

Fraud: Why Does It Take Place?

Simple economics: Supply and Demand

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1.  Supply and Demand

2. Poorly defined success metrics:

Eyeballs (CPM) Action taken (CPC, CPA)

3. Because it’s cheap and easy for hackers

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Back To The Basics Digital Fraud Dictionary

Click fraud noun \ˈklik frȯd\ imitation of legitimate click-through events on advertisements with no interest in link target

Impression fraud noun \ˈim-ˈpre-shəәn frȯd\ 1. imitation of legitimate impression views with no interest in ad content. 2. Solicitation of impressions with no opportunity to be viewed by a human Bots noun \ˈbäts\ a device or piece of software that can execute commands, reply to messages, or perform routine tasks, or perform routine tasks with minimum human intervention Illegal bots noun \(ˌ)i(l)-ˈlē-gəәlˈbäts\ computers that are compromised and whose security defenses have been breached and control conceded to a third party Botnet: noun \ˈbät net\ a collection of bots communicating with command centers in order to perform tasks Pixel stuffing: noun \ˈpik-səәl ˈstəә-fiŋ\ stuffing an entire ad-supported site into a 1x1 pixel Ad stacking: noun \ˈad ˈsta-kiŋ\ placing multiple ads on top of each other in a single ad placement

What fraud is not:

•  Web crawlers •  Poor viewability;

below the fold •  Collisions •  In-banner, auto-

play, muted video

Hacker:

Sex: Male

Age:18-35

Location: Eastern Europe, Asia

Background: Good computer skills

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Who Are The Participants? Profile

Botnet Operator:

Sex: Male

Age: 34+

Location: Eastern Europe

Characteristics: Disregard of the law, confident, driven by money

Typical Infected Computer Owner:

Technologically challenged

Owns a dated computer and software

Suburban, rural, household without kids

Unlikely to own a smart phone/tablet

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How Does It Work? Follow the bot

Once upon a time Joe Schmo turned on his computer and installed a cleanup software.

At that very moment a Trojan downloaded and installed a bot engine on Joe’s computer, and Joe

didn’t even know about it!

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How Does It Work? Follow the bot

Once upon a time Joe Schmo turned on his computer and installed a cleanup software.

communicating with a botnet center.

At that very moment a Trojan downloaded and installed a bot engine on Joe’s computer, and Joe

didn’t even know about it!

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How Does It Work? Follow the bot

Once upon a time Joe Schmo turned on his computer and installed a cleanup software.

Later that day, unbeknown to Joe, the bot engine started

communicating with a botnet center.

At that very moment a Trojan downloaded and installed a bot engine on Joe’s computer, and Joe

didn’t even know about it!

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How Does It Work? Follow the bot

Once upon a time Joe Schmo turned on his computer and installed a cleanup software.

Later that day, unbeknown to Joe, the bot engine started

Joe’s bot was instructed on which sites to visit, in

which sequence and at what frequency.

communicating with a botnet center.

At that very moment a Trojan downloaded and installed a bot engine on Joe’s computer, and Joe

didn’t even know about it!

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How Does It Work? Follow the bot

Once upon a time Joe Schmo turned on his computer and installed a cleanup software.

Later that day, unbeknown to Joe, the bot engine started

Joe’s bot was instructed on which sites to visit, in

which sequence and at what frequency. performed the script assigned by the botnet center through visiting high value audience sites

to profile Joe as an ideal candidate for advertisers.

According to instruction, Joe’s bot activated and

communicating with a botnet center.

At that very moment a Trojan downloaded and installed a bot engine on Joe’s computer, and Joe

didn’t even know about it!

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How Does It Work? Follow the bot

Once upon a time Joe Schmo turned on his computer and installed a cleanup software.

Later that day, unbeknown to Joe, the bot engine started

Joe’s bot was instructed on which sites to visit, in

which sequence and at what frequency. performed the script assigned by the botnet center through visiting high value audience sites

to profile Joe as an ideal candidate for advertisers.

According to instruction, Joe’s bot activated and

The bot was also instructed to go to sites that sell

bot traffic that generate millions of fraudulent ads.

communicating with a botnet center.

At that very moment a Trojan downloaded and installed a bot engine on Joe’s computer, and Joe

didn’t even know about it!

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How Does It Work? Follow the bot

Once upon a time Joe Schmo turned on his computer and installed a cleanup software.

Later that day, unbeknown to Joe, the bot engine started

Joe’s bot was instructed on which sites to visit, in

which sequence and at what frequency. performed the script assigned by the botnet center through visiting high value audience sites

to profile Joe as an ideal candidate for advertisers.

According to instruction, Joe’s bot activated and

The bot was also instructed to go to sites that sell

Meanwhile, the botnet operator sat back and

counted his money, and Joe…well he didn’t read this story. And they all lived happily ever after.

bot traffic that generate millions of fraudulent ads.

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Heat Map See the action

Live Demonstration What does it look like?

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So What Can We Do About It? Fighting Back

Policing – FBI or private companies

Pros: Bringing the criminals to justice Cons: Inefficient and ineffective – every botnet that is shut down is soon replaced by a new one

Technology – The only way to cut the flow of cash

Black lists – When fraud is detected a site is added to a blacklist

Pros: Reactively shuts down supply to fraudsters Cons: Lists are not updated frequently

Impression level detection and prevention

Pros: Proactively shuts down supply to fraudsters; Detection at the impression level allows for scale Dynamic

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How Is Fraud Detected?

First we look at behavioral patterns We flag the following non-human signals:

Cookies that are deleted at the end of activity cycle Intense activity Reoccurring activities patterns/levels

At this point: some bots are detected, others are able to go undetected Next – we look at each impression

•  Signals that are atypical for a human •  Density of page loads •  Density of page visits •  Atypical distribution of browsers •  Browser spoofing •  Conflicting measurement results •  Was the impression traded in a suspicious way

Cross-validate all of the above and determine validity of signals and patterns

Behavioral Pattern

Bot

…or not

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So Who Is To Blame?

Innocent bystanders: Legitimate advertisers and publishers

Guilty: Botnet operators Those who knowingly buy/sell bot traffic

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How Is The Industry Dealing With Fraud?

Proactive

Passive Pretend the problem

doesn’t exist

Knowingly or unknowingly buy and sell bot traffic

Able to eliminate

some of the bot traffic

Eliminate all bot traffic Are serious about fraud: •  Use cutting edge technology to

vet 100% of inventory

Partially address the problem: •  Use a subpar solution

•  Run the technology only on part of the inventory

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The Integral Ad Science Solution Proactively Block Fraud

Benefits: –  Proactively block fraud before the ad is served – Dynamic data used to cross reference fraud signals – Not relying on outdated, rarely updated black lists –  Pre-bid fraud solution prevents bidding on fraudulent inventory

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