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Fraud in the mobile industry is a bigger problem than ever

App marketers stand to lose $100m to mobile app install and engagement advertising fraud in 2016. That’s according to new research from mobile attribution and marketing analytics firm, AppsFlyer. The State of Mobile App Install & Engagement Fraud study also revealed the countries with the highest rates of advertising fraud.

Mobile app install and engagement fraud carries a cost of $350m for advertisers globally. $100m of this sum are verified fraud, whilst another $250m are suspected.

The research also found that the US may be the most targeted region in terms of advertising fraud. However, Germany, Australia, China, Canada and the UK are also experiencing high rates of app-install and engagement fraud. According to Geenapp’s Head of Quality and Fraud, Carles Cervera, that’s because generally fraudsters try to target countries where potential payout is greater. “The pirate’s effort is the same for a small payout and a big payout, that’s why pirates concentrate on the countries with higher payouts like US, Germany or Canada.” Cervera’s said. Higher cost-per-install and cost-per-action campaigns also come with greater fraud rates. Regions where there’s a low payout, such as Indonesia, Brazil, Vietnam and Thailand were found to exhibit less fraud.

Android devices are more prone (up to 50%) to advertising fraud than iOS devices, according to AppsFlyer. The exception is China, where iOS devices exhibit higher advertising fraud due to having greater ad payout rates. The main reason is because is easier to do a fake installation in android thanks to softwares that mimic the Google OS.

Fraud in different global markets

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Android devices experiencing higher fraud rates

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