Fraud Overview & Recommendations
Understanding Ad Fraud in Offerwalls
99% of users who enter publishers apps are real, quality, engaged users. However, the 1% of bad actors can make a substantial impact on revenue, advertiser bid rates, and campaign pauses. Ad fraud occurs when malicious actors manipulate attribution systems to make it appear as though they've completed certain actions or events within an advertiser's app, often by using bots or other automated tools to simulate engagement. These fraudulent actions can lead to skewed data and significant financial losses for advertisers and publishers.
Why Offerwalls Are Targets for Fraud
Offerwalls incentivize users to complete tasks or engage with apps in exchange for rewards, such as virtual goods, gift cards, cryptocurrency, or even cash. The more tangible and valuable the reward, the more attractive the offerwall becomes to fraudsters. The risk of fraud increases particularly when these rewards have offline value. Fraudsters aim to manipulate these systems to generate rewards without engaging in legitimate app activities.
What can I do to prevent fraud?
When fraudsters target your platform, they're looking to gain funds easily and exit your ecosystem as quickly as possible, potentially using numerous accounts to do so. Fraudsters who have their time wasted or are unable to cash out are often going to move away from your platform and search for an easier target.
We have a number of tools at our disposal to help catch fraud and collaborate together to ensure strong quality for our advertisers. To best combat fraud, we recommend two major features that you implement, withholding periods on AdGem funds and implementation of our suspended player webhook.
When we catch fraud, we'll notify you right away and inform you that you should lock a player's account down, preventing any withdrawals. If fraud is not caught in real time, our internal systems will typically catch this very shortly after payout is sent. By implementing withholding periods and the suspended player webhook, there is no financial risk, as players accounts' are locked before they can exit your ecosystem.
Publisher Recommendations
Suspended Player Webhook Implementation — Top Priority
- Webhook is sent in real time as fraud is caught and indicates cashout risk
- Players' accounts should be locked upon receiving webhook
- Best real time solution for deterring fraud
Withholding Period — Top Priority
- Recommendation of a 24-72 hour holding period for AdGem earned funds before cashout
- Combination of brief holding period & suspended webhook implementation reduces fraudulent funds leaving publisher ecosystem significantly