Imagine being a federal agent back in the days of Prohibition. You go to work every day in hopes of finally putting a stop to illegal bootlegging. But at every turn, it seems like the bootleggers are one step ahead of you. Modern cybersecurity experts probably feel pretty much the same way. Ad fraud scammers seem always ready with a new scam the minute their current scams are discovered.
Server-side insertion scams are all the rage right now. These types of scams involve setting up fraudulent servers that look extremely inviting to advertisers. But the servers exist for only one reason: to steal from anyone who dares to advertise on them.
A recent Campaign Asia report warning of server-side insertion scams in the streaming audio sector cited an example from 2019 explaining how this sort of scam works. The report should be a wakeup call to any online advertisers that utilize audio streaming services as a marketing tool.
How the Scam Works
In a legitimate server-side scenario, an advertiser might sign up with a well-known platform like Spotify. As a trusted music platform, Spotify is a great place to advertise to targeted demographics. Place the right ads on Spotify and they can work wonders.
So what do scammers do? They create applications that proof residential IP addresses and legitimate audio apps. They install those apps on servers that go on to make audio ad requests from music platforms.
There is no one actually listening to the music because the server is fake. Still, the music platform sends ads to the server, ads that translate into chargeable plays. Finally, they sell new ads to advertisers who think they are signing up with a legitimate ad server.
With a sophisticated enough set up, a scammer can generate a ton of traffic that appears to be legitimate. The traffic is run through audio platforms in order to siphon ad revenue by targeting online advertisers who are none the wiser.
It’s All About the Traffic
Online advertising scams are about one thing: traffic. Whether you are talking PPC ads, affiliate marketing, or server-side insertions, traffic equals revenue. Scammers count on the fact that online advertisers have no idea how any of this works. If they did know what was going on, they would make every effort to stop it.
The developers of the popular Fraud Blocker click fraud detection software do just that. They know how the game is played. They develop tools and strategies for identifying fraud and stopping it in its tracks. Other companies offer similar products and services. Yet as successful as they are, online scammers still steal billions from advertisers every year.
A Cat-and-Mouse Game
What we have here is essentially a cat-and-mouse game between scammers and online advertisers. It is an ongoing battle with each side gaining the upper hand for a while, then losing it as the other side adapts. Perhaps the most fascinating thing is watching the various adaptations evolve.
The online scams of 20 years ago cannot hold a candle to the most sophisticated attacks of the 21st century. Today’s online scams involve a combination of hi tech software, network hacking, and old-fashioned human ignorance. Success as a scammer requires staying one step ahead of the cyber security experts trying so hard to shut you down.
It would appear as though the scammers are winning right now. That will not last forever. Things will eventually cycle back in favor of online advertisers and their cybersecurity warriors. If nothing else, watching it all take place is both fascinating and educational.
