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Posted on October 17, 2017, at 1:46 p. Over 100 brands saw their ads fraudulently displayed on the sites, and roughly 50 brands appeared multiple times. Another key player is a former employee of a large ad network who runs a group of eight sites that were part of the fraud, and who consults for a company with another eight sites in it. 301network, the ad platform used in the scheme, is now in the process of being shut down and many of the websites that participated have also been deactivated. This scheme illustrates that while governments and platforms such as Facebook are grappling with online misinformation, the advertising world is in the midst of its own crisis brought on by a multibillion-dollar form of digital deception: ad fraud. This investigation also reveals how seemingly credible players in the ad supply chain can play an active role in — and profit from — fraud. It’s yet another example of how the digital ad industry is being rocked by concerns about quality, fraud, and brand safety.
Pixalate, a fraud prevention and detection company, recently exposed a group of seven sites involved in the scheme as a result of its own independent investigation. Another fraud detection company, Integral Ad Science, reviewed sites that participated in the scheme and found they engaged in fraudulent tactics to generate ad impressions. We have stopped the dumb criminals. Now we need to be able to stop the smart criminals. 4 billion this year to ad fraud, more than double what was stolen in 2016.
In spite of rising losses and brand concerns, Zaneis believes recent initiatives in the industry have made it more difficult for criminals to make money from ad fraud, which has in turn required them to develop more-sophisticated attacks. Ads for major brands were fraudulently displayed on approximately 40 websites. What caught the attention of researchers at Pixalate and Social Puncher, two companies that identified the fraud independently of each other, was that sites in the scheme deployed a sophisticated method to automatically redirect traffic between websites in order to rack up ad impressions and avoid detection. Once caught in this web of redirects, the sites show a constant stream of video ads that are often barely interrupted by actual editorial content. The websites in the scheme focus on niche topics, such as beauty, celebrity news, food, and parenting, that are popular with major advertisers and that can attract high ad rates.
In many cases the sites are filled with images and content that has been plagiarized or loosely rewritten from other websites. Kylie Jenner’s Post Instagram Posts A Fascinating Selection Of Shirts. If any real visitors did happen upon these sites, the scheme was designed to avoid detection by ensuring that a normal user visiting the homepage or regular URL would not be exposed to the malicious behavior. Social Puncher identified the secret URLs and then accessed them in order to verify the fraudulent ad display. Along with the secret URLs, the scheme attempted to avoid detection by using a network of different sites to ensure no single property generated enough revenue to risk catching the attention of fraud detection companies, or of the brands being defrauded.
Many sites in the scheme would launch, instantly gain traffic and ads, and then see their audience disappear months later. It was the digital equivalent of skimming from a casino. Americans with ties to the US digital ad industry. All sites involved in the scheme used ad technology provided by 301network, which is a company connected to 301 Digital Media, a marketing agency based in Nashville. Pixalate also saw 301’s ad code in the sites it examined. Pixalate publicly exposed the ad fraud executed by seven sites owned by a shell company called Monkey Frog Media LLC.
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The sites were all taken offline shortly after Pixalate’s blog post was published. Arceneaux portrayed it as a case of his small ad platform being exploited by unscrupulous players like Monkey Frog. Market 57 LLC, which had five sites, lists its corporate address as the headquarters of 301. Orange Box Media LLC, which owns another five sites, is also registered in Tennessee and lists Arceneaux’s home address in its corporate records. A final sign that these companies share an owner is that on September 8 at roughly noon Eastern the websites belonging to all three companies were taken offline at the same time, according to data gathered by Social Puncher. Arceneaux initially denied any connection between the shell companies and 301. Neither 301 Digital Media, 301 Ads nor 301 Network have any ownership in any of the businesses you mention.
He did not reply when asked to clarify if he or his partner, COO Andrew Becks, have personal stakes in the companies. Becks did not respond to the question. Documents show that Arceneaux has been operating the Monkey Frog Media sites since at least 2015. On December 11 of that year, an employee of an ad tech company sent an email to get Monkey Frog’s websites set up as a customer. Monkey Frog when he signed the contract, and was also listed as the company contact.