NOIZ Mends the 5 Flaws of Online Advertising to Eliminate Ad Fraud

July 15, 2019

A recent Juniper Research Report estimates that ad fraud will consume US $42 billion in 2019, making it one of the most lucrative criminal industries in the world.

Marketers have expressed interest in eliminating ad fraud; however, many have simply come to accept ad fraud as common practice and develop their strategies around the knowledge that a significant portion of their ad spend is wasted.

NOIZ is the solution to fight this wastage; it is the peace of mind that marketers need. To explain further, it is necessary to grasp the reality of how ad fraud works.

So what is ad fraud?

It is the profitable act of taking advantage of the flaws in the online advertising industry, of which there are many.
 

Flaw #1: Online advertising is based off clicks, views and impressions

This flaw is responsible for the majority of ad fraud revenues. Imagine, 1 click cost $1 for the advertiser paying to place the ad. Today, ad fraud bots are able to generate clicks, views and impressions, which creates higher costs for advertisers. Who profits from this, though? One possible fraudster and profiteer could be the publisher, the owner of the website who is selling the ad space. Here’s how one could set this up:

  • Create a website
  • Install plug-in for Google Adsense
  • Build up traffic to site (fake or real)
  • Attack site with spambot
  • Site makes more money

That’s how easy it can be to start profiting from ad fraud. Here’s a list of 9 ad fraud techniques for taking advantage of the click, view and impression flaw: https://clearcode.cc/blog/rtb-online-advertising-fraud/

NOIZ Solution to Flaw #1: Cognitive Marketing Campaigns

A cognitive marketing campaign is one that uses AI to learn from user interactions and improve upon itself based on what it learns.

In this same fashion, AI within these ads are also learning how to spot suspicious activity, filtering out the fraudulent traffic of click bots and improving it’s anti-fraud capabilities more and more over time.

Additionally, NOIZ cognitive ads will be rewarding consumers with NOIZ credits when they engage with NOIZ campaigns and choose to share their data. To use NOIZ credits, consumers will need to complete a KYC process, which is nearly impossible for a bot to fake.

Through both the AI monitoring and the KYC process, advertisers in the NOIZ ecosystem receive reports consisting of genuine customer data.

Flaw #2: Advertisers don’t always place their own ads

Marketers want their ads to perform as best they can. This means sometimes placing campaigns across ad networks or through affiliate link programs that don’t necessarily follow GDPR guidelines.

Consider the free [illegal] video streaming sites people visit. They have lots of traffic. Big companies know it, and sometimes they’ll go after this traffic intentionally. Other times, its unintentional.

Many of these sites use affiliate marketing tools like Clickwise, making profits off the clicks they generate. It may not be the brand’s decision for their ad to appear through such sites, but the brand decided to post an affiliate link in Clickwise and the shady streaming site picked up this link to advertise.

Every time the ad with the affiliate link is clicked (often times not actually an ad, just a click anywhere on the webpage), the shady, likely illegal website receives money from Clickwise. The shady site can then do as mentioned in Flaw #1 and attack their site with spambots, generating more clicks and even more profit. All of this on an ILLEGAL website.

Here’s an example: https://www2.123watchfree.in/123

If a user has his or her ad blockers turned off, and sometimes, even if ad blockers are turned on, any click on the above example shady site will frequently direct the user to an affiliate link landing page (an ad of sorts). The landing pages that display vary from person to person. In the case of this experiment, the following brands had ads display:

Internet privacy tool ExpressVPN

Travel

Booking site Expedia

Sportswear company NIKE

Flaw #3: It's easy to take advantage of trusting people online

Any person can advertise most any product or service online. Platforms like Facebook and Google have restrictions as to what can be advertised, but ads promoting restricted topics can go live before Facebook or Google are able to take them down. Some ads promoting restricted topics don’t ever get taken down and manage to bypass Facebook and Google’s flagging systems. Other ads promoting restricted content do so on ad networks or publishing sites that don’t really care what is advertised across their platforms.

How does ad fraud work in this sense?

  • Create a website selling aquatic sports equipment in the Philippines (using stock photos found online)
  • List an actual address on the website
  • Pay for fake reviews to make the business look legitimate
  • Publish ads across the web
  • Ask interested parties to make deposits on the equipment they’re interested in renting
  • Collect deposits in multiple receiving accounts
  • Sell interested parties’ personal data
  • Interested parties show up to your listed address, only to find out it’s a garbage dump
  • Change site domain and “company” name, keep content the same
  • Constantly take money out of receiving accounts, then close the accounts

Fraudsters could also create URLs that are similar to popular sites, like Expedia.co, then direct traffic to their spoof site, convincing people it is the real Expedia.

NOIZ Solution to Flaws #2 & 3: Consensus voting to keep the community honest

If a publisher scams an advertisers, as described in Flaw #2, the advertiser can place a vote against that publisher.

If an advertiser scams a consumer, as described in Flaw #3, the consumer can place a vote against that advertiser.

Placing votes on other NOIZ actors doesn’t necessarily kick that actor out, nor does it prevent the fraud that has already occurred. However, it does send out flags to NOIZ elected moderators who can review the case. If a bad actor is discovered, they will be removed and blocked from future interaction on the NOIZ network.

Flaw #4: Lack of tech security…. Everybody be watchin’ you!

“This black t-shirt would go great with the blue jeans you’re wearing right now” said the marketer to the online shopper.

Perhaps it’s not that scary, yet, but the above creepy sentence is not far off from what ad networks are able to find out about their online audiences.

Data is often collected through the use of cookies, device fingerprinting and various forms of identification (such as account logins). Some organizations make use of all three. There are also large companies that purchase smaller organizations and apps, like IBM purchasing The Weather app for location data. These large companies then combine all of the data across the different platforms and apps they’ve acquired, to get very precise insights into target audiences.

Many people like the concept of personalization, and have little interest in knowing what exactly a personalized experience really entails--all of the information that is collected on them across many different apps and platforms.

NOIZ Solution to Flaw #4: Communication

It is difficult for data privacy and personalization to coexist, yet, this is the purpose of NOIZ.

By having consumers proactively tell brands what they want, invasion of privacy to assume what consumers want is no longer necessary. Brands can more ethically interact with their target audiences.

Flaw #5: Ad Fraud is not a CRIME... in most Countries

The digital world is like the Wild Wild West. Many laws have yet to be defined; it’s difficult to authenticate information and sources (“Snake oil cures all. Trust me, I’m a doctor”); and different regions have different rules.

This is one of the key reasons cyber crime is increasing year over year; it’s lucrative and difficult to punish. Criminal law authorities are usually the responsible party for handling this crime, but the cyber criminal may not be in the country where the law authorities have jurisdiction. The cyber criminal’s location may not even be discovered. Identity of cyber criminals is another struggle for regulators, due to the anonymous IDs and other smoke and mirror tactics used by cyber criminals.

From an advertiser’s perspective, it is already difficult to determine if clicks, views and impressions are genuine. It is even more difficult to have a regulator help a brand in reclaiming funds wasted to ad fraud.

When it comes to consumer privacy, regulations have existed since the 1970s. Regions leading the privacy regulations include the United States, the European Union and Australia. However, “leading” is easy to do when most countries aren’t doing anything at all.

Even with the privacy regulations that exist, it is difficult to enforce them, and even when they are enforced, the fines imposed are little more than slaps on the wrist for large companies.

n fact, if a company suffers a data breach and loses information like consumers’ names, email addresses, credit card info, passport numbers, etc., all they need to do is say sorry within 72 hours. Most people don’t take bother taking action over the loss of their private data. They tend to say “Meh” and continue using the service.

NOIZ Solution to Flaw #5: Consumers lead the way On a Cross-Chain Ledger

NOIZ is changing this by putting consumer is in control of their data, and who can see their data, from the start.

Using a cross-chain blockchain ledger to store consumers’ data NOIZ is also much more secure than existing data storage services. It’s almost impossible for cyber criminals hack NOIZ users’ information. They could still attempt phishing attacks, but even then, a consensus system will boot their NOIZ account if malicious activity is reported.

The best part, the NOIZ data storage protocol is global. It does not need to wait for a country’s regulators to make decisions to keep consumers safe.

Online Fraud Will ALWAYS Exist, but Shall Be Stuck Behind a Wall of NOIZ

There are already instances of fraudsters bypassing KYC verification by using other people’s photos and IDs.

Fighting online fraudsters is a never-ending battle between good and evil, and requires both parties to constantly be monitoring what the other is doing. It is the goal of both fraudsters and anti-fraud systems to hold the upper hand.

In the case of NOIZ, because it is using multiple layers of next-generation verification to authenticate users and their engagement, the NOIZ ecosystem is striking a blow against fraudsters that will leave them crippled for the foreseeable future, perhaps even for good.

For marketers and online users wishing to steer clear of online fraud, NOIZ is the answer.

Leave a comment