Slashdot Mirror


Smartphone Apps Fraudulently Collecting Revenue From Invisible Ads

JoeyRox writes: Thousands of mobile applications are downloading ads that are never presented to users but which collected an estimated $850 million in fraudulent revenue from advertisers per year. The downloading of these invisible ads can slow down users' phones and consume up to 2GB of bandwidth per day. Forensiq, an online technology firm fighting fraud for advertisers, found over 5,000 apps displayed unseen ads on both Apple and Android devices. "The sheer amount of activity generated by apps with fake ads was what initially exposed the scam. Forensiq noticed that some apps were calling up ads at such a high frequency that the intended audience couldn't possibly be actual humans."

20 of 129 comments (clear)

  1. Gee, I'm really torn... by jenningsthecat · · Score: 5, Interesting

    On the one hand, fraudsters who steal phone users' bandwidth in order to reap revenue from advertisers, are scum.

    On the other hand, so many advertisers are scum as well, and the enemy of my enemy might be my friend. I might be willing to lose a bite out of my data cap in order to stick it to advertisers. Oops, did I say that out loud?

    --
    'The Economy' is a giant Ponzi scheme whose most pitiable suckers are the youngest among us and the yet-unborn.
    1. Re:Gee, I'm really torn... by Kokuyo · · Score: 2

      Data cap? Is that really still a thing?

    2. Re:Gee, I'm really torn... by mlts · · Score: 2

      The ad industry is a bubble. Look at the clickbait ads pushed at you constantly. Obama's HARP, reverse mortgages, asking how much your car is worth, "free" [1] $100 Amazon gift cards. Programs that are dodgy at best. "criminal background checks" that demand a ton of your info... then want $35-50 for the check. Yes, there are a few relevant items, but most presented are at best dodgy.

      What they are selling are not ads. They are selling the data that gets slurped off your phone or computer, which is why browser fingerprinting, supercookies, add-ons galore, and other stuff are the norm. The ads are secondary to watching what the person is doing, 24/7.

      [1]: TANSTAAFL. I read the T&C on a "free" offer, and it required subscribing to three different things on a gold/silver/bronze level, as well as many other hoops to jump through before you would even be considered for the card.

    3. Re:Gee, I'm really torn... by bondsbw · · Score: 2

      So, what you're saying is...

        - Users are not forced to pay once cent to obtain any of the content
        - Users find products they are interested in, and are priced reasonably enough that the user wants to purchase the product
        - Sellers find potential buyers they might otherwise not find
        - Sites make money to encourage continued generation of content

      And on top of that, users can block ads just by installing AdBlock.

      I'm really having a hard time finding the downside in this.

      --
      All my liberal friends think I'm a conservative, all my conservative friends think I'm a liberal.
    4. Re:Gee, I'm really torn... by Solandri · · Score: 4, Interesting

      While you may disagree with the price exacted by advertisers, they are still providing you with something in exchange. They help pay for the website you are visiting. Without their ads, the site likely wouldn't exist, or would exist in a considerably less useful form.

      Ad fraud steals money from advertisers, period. They are taking money from the advertisers without providing a good or service in exchange. This is theft.

    5. Re:Gee, I'm really torn... by farble1670 · · Score: 2

      Websites existed well before ads came around. There are other models to make revenue, be it subscriptions, microtransaction based clearinghouses [1], grants, or other ways.

      the early web was experimental and non-profit, but that was really, really early. the internet boom has had ads since day one. there was never a time when websites were (primarily) supported by subscriptions, microTxs, etc.

      but anyway, if people could make more money that way, do you think they would? or what, no one has thought of it yet, and the world's just waiting for your insight into website profitability? no, almost no one supports themselves in that manner because it's not viable. any web product i know of that has a subscription model does it as a side to the primary revenue stream: ads.

  2. 2GB per day? Really? by StayFrosty · · Score: 2

    [quote]The downloading of these invisible ads can slow down users' phones and consume up to 2GB of bandwidth per day.[/quote]

    While this is an interesting revelation, I'm not really sure what the fear-mongering is all about. What is Forensiq trying to sell here?

    --
    "Frequently wrong, never in doubt."
  3. 3rd party lib or app itself ? by perpenso · · Score: 4, Interesting

    I wonder if a 3rd party lib is responsible for any of this, quietly committing the fraud without the app developer's knowledge? Unless those 5,000+ apps are coming from a relatively small number of developers.

  4. Hosts on the Android by TheDarkMaster · · Score: 4, Interesting

    The first thing I do after a system update or rooting is changing the host file to block all know ads servers.

    --
    Religion: The greatest weapon of mass destruction of all time
    1. Re:Hosts on the Android by TheDarkMaster · · Score: 3, Insightful
      --
      Religion: The greatest weapon of mass destruction of all time
    2. Re:Hosts on the Android by drooling-dog · · Score: 3, Insightful

      I've had a very good experience with this one. I'm accustomed to it now, so using someone else's computer without it (or similar) feels like swimming in a shark-infested pool with turds floating in front of my face.

  5. Re:My Cell Data Usage "Current Period 12.4 GB" by itamihn · · Score: 2

    In android you can view the data usage per app. Is there something similar in iPhone? It easily pinpoints which is the app(s) that is use more data than they should.

  6. Also consumes device space... by zarmanto · · Score: 4, Interesting

    I'm pretty sure I had one of these offending apps, at one time -- though, in my case it may have been a legitimate error on the part of the developer, rather then malicious: It was an alarm clock app for iOS, which displayed a banner ad when you had it in portrait mode but not when you had it in landscape mode. Funny thing is, I learned in the course of time that it was still downloading those ads regardless of orientation, because there's an odd quirk in the way some (or all?) iOS apps download ads; they retain the ad on the device for some indeterminate period of time. Since I just left the iPad charging and sitting on that alarm clock app whenever I wasn't actively using the iPad, this caused that one app to bloat to ridiculous proportions over time, eventually filling up multiple gigabytes of space -- that is to say, all of the remaining space on the iPad.

    (Naturally, I eventually ditched that app and sought out one which was entirely ad-free.)

  7. Re:2GB per day? Really? by Coren22 · · Score: 2

    On Verizon's network, 1 GB costs $10, so 2 GB * 30 days * $10 = $600. That would be a big deal to me if my kids were playing this game with their 4G connection turned on.

    --
    APK likes to ask for responses to the same things over and over. Maybe he just likes the responses?
  8. It depends on your theory of value by Etherwalk · · Score: 2

    You should only pay out on pay-per-click, and even then, the payout should be largely affected by how long that user stayed after clicking an ad, whether they bought anything, etc.

    Under a Lochean earned income theory of value (i.e. you should get paid for what you earn), paying an advertiser based on how successful you are at *retaining* customers sent your way seems wrong in most cases. The advertiser is then earning or not earning money based on how good of a job *you* are doing at retaining customers, rather than based on how good of a job *they* are doing at sending you customers.

    There is one relevant component there still which is whether they are sending you the *right* customers, but usually we measure that by demographics and income rather than by the metric of how long they stay on your site, which is much more dependent on whether *you* are doing a good job retaining customers.

    On the other hand, if you are determining what the advertiser should be paid based just on the free-market whatever-we-agree to idea, then you can pay them based on anything you both agree to, including the number of elephants who would fit in your living room. Most advertisers don't sell advertising based on how effective they are at getting customers to buy things, though--that's what salespeople do, and our society tends to make a significant distinction between sales and advertising.

    1. Re:It depends on your theory of value by AvitarX · · Score: 2

      The advertiser could stop showing ads that don't generate revenue.

      The advertiser wants to get revenue per ad shown, but they could offer businesses different ways to pay.

      Pay per a click (sites that exist on advertising themselves may prefer this model), pay per a view (brands such as coke or pepsi may prefer this), pay per revenue (sites that actually sell things may prefer this). The ad network only cares about pay per view, but if one ad has a huge click through percentage, they could list that ad, and everybody wins (ad network gets more money, the site profiting on the click throughs does too). Similarly a site that has a decent sell through rate of expensive purchases may be the most profitable ad to show.

      There's no reason to only have on pricing model, and by diversifying the purchase amount the buyers can optimize their budgeting (perhaps at an overall expense to themselves), and the sellers can maximize their per view payment,

      This is how google used to so it when you bid price per a click for keywords, ads that weren't clicked on simply were no longer shown.

      --
      Wow, sent an e-mail as suggested when clicking on "use classic" banner, and got a fast response that addressed my msg
  9. Change who pays by Moof123 · · Score: 2

    Similar to how you don't pay to receive a call on your land line, the laws around cell billing need to be changed so that advertisers must pay for their bandwidth usage rather than the user. If I don't ask for it, I should not have to pay for it (radical concept...).

    Wasting cell data is not a bother to your provider, rather it just lines their pockets. More transparency on the real cost of data might show how big their incentives to let this crap go on are.

  10. Re:Keep it up boys by tompaulco · · Score: 4, Insightful

    Keep it up, keep ripping off advertisers, drive the value of advertising on our phones down to zero. Eventually nobody will be making money and we can relive the golden age of computers on our smartphones, an age dominated by passionate hobbyists and shareware authors.

    I keep thinking that we are going to see Google collapse in on itself when people realize that every dollar spent on internet ads leads to less than a dollar worth of increased sales. But Google is smart enough to not be dependent upon ad revenue, but acts as "the house" where they play odds on both the ad buyers and the ad sellers and make sure the house always gets its percentage. In order for Google to go under, a large number of online businesses would have to realize that online advertising is worthless, and lucky for Google a sucker is born every minute.

    --
    If you are not allowed to question your government then the government has answered your question.
  11. Re:what? by OrangeTide · · Score: 2

    If you have a contractual arrangement to be paid for clicks or views, and you rip off the other party. It doesn't particularly matter how easy or difficult it is to accomplish the breach of contract. If they catch you, they can make a case against you.

    Of course if you base your business around bad technology that is easy to trick, I totally agree you shouldn't be surprised if there is rampant abuse.

    Senior SW Engineer/Architect - IANAL

    --
    “Common sense is not so common.” — Voltaire