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False advertising has evolved beyond simple exaggerations, into a complex web of deception that targets even the most cautious consumers. According to reports, millions of consumers have fallen victim to thousands of fraudulent ads, often leading them to counterfeit products or misleading services. These ads are particularly prevalent on social media platforms like Instagram and Facebook, where users tend to trust the content they see. Since 2017, over 70 global brands, including Adidas, Nike, and Apple, have been targeted, with some ads receiving over 200,000 views in just a few days before detection.

This article will discuss the growing risks of online ad fraud, expose the sophisticated tactics used by bad actors and examine real-world examples of major brands affected by these schemes.

The rise of new technologies has given bad actors innovative tools to deceive unsuspecting consumers. Let’s explore some of the most prevalent emerging trends in digital ad fraud:

Hyper-targeting Ads

Hyper-targeting ads involve a marketing strategy that directs advertisements to specific demographics using data such as browsing history, location, interests, and online behaviors. Unfortunately, bad actors have begun to exploit this technique, creating deceptive content that seems legitimate. They often redirect consumers to websites or landing pages featuring counterfeit products or promoting items that are prohibited by digital platforms.

For instance, New Life USA, a supplements company, launched an ad campaign aimed at Facebook users interested in diabetes awareness. The ads showcased images teasing diabetes patients to indulge in fast foods like a Walmart pie or a Costco sandwich without resulting in any side effects. When users clicked on the ad, they were redirected to purchase a $229 Reverse Diabetes Package. But it’s important to note that this type of ad from New Life USA clearly violates Meta’s ad policy and misleads consumers with unsafe claims.

Celebrity Impersonation

Scammers are increasingly using celebrity images in fraudulent ad content known as “Celebcore,” leveraging the fame of these celebrities to promote popular products such as weight loss pills and lucrative investments.

media trust infograph Source: The Media Trust
These scams prey on the trust of consumers in celebrities such as Tiger Woods, Elon Musk and Martha Stewart, pairing their images with sensational headlines. Clicking these ads often leads to phishing sites aimed at stealing personal information. What makes Celebcore scams particularly dangerous is the use of cloaking techniques to hide fraudulent pages from detection. This helps scammers bypass security filters, making it harder for platforms and users to identify these threats.

AI-generated Fake Reviews

One of the most concerning developments in online ad fraud is the proliferation of AI-generated fake reviews. In 2023 alone, Trustpilot identified and removed a staggering 3.3 million fake reviews from its platform. This represents a significant increase from the 2.6 million fake reviews eliminated just a year before.  

What makes this trend particularly alarming is the difficulty in distinguishing between genuine and fake reviews. Studies reveal that only about half of consumers can differentiate between text written by AI and that written by a human. This poses a significant challenge for both consumers and platforms like Trustpilot in filtering out fake reviews and identifying authentic opinions. 

Deceptive URLs

Fraudsters often use deceptive URLs and redirection to evade detection and exploit users’ trust in legitimate websites. A common tactic involves ads that appear to link the official site of a well-known brand but redirect users to rogue sites selling counterfeit goods. Scammers also use URL shorteners like Bit.ly and IP cloaking to hide the true destination from both consumers and security systems.

deceptive infograph Source: getcybersafe

Let’s review a great example of a spoofed Amazon site shown in the ‘Get Cyber Safe’ campaign from the Canadian Government. This example features:

  • An unlocked padlock icon indicating a lack of security
  • A suspicious web address (URL)
  • Unrealistic offers that seemed too good to be true
  • A suspicious email addresses
  • A questionable privacy policy
  • A return policy highlights “final sale” items to prevent returns or exchanges

This fraudulent page showcases common techniques employed by bad actors. One effective way to protect your brand is to educate your consumers about these warning signs.

Ghost Social Media Ads

Ghost social media ads are often short-lived to evade detection. These auto-generated ads lack meaningful content and are swiftly removed either at the end of the campaign or when suspended by platforms, making them difficult to track.

A prominent example is the bot-generated, fake Ray-Ban ads on Facebook, which promote discounts of up to 90% on sunglasses. These ads direct unsuspecting users to phishing sites designed to steal their personal information or sell counterfeit products. Even after being removed, they rapidly resurface under different account names, forcing brand protection teams to engage in a relentless game of Whack-a-Mole.

Scammers are increasingly exploiting Google’s ad platform to promote fake services, malicious apps, and fraudulent websites, making these deceptive ads appear legitimate to unsuspecting users. When clicked, users are often led to download harmful apps, sign up for fake services, or visit websites designed to steal their personal information.

Shockingly, 75% of top brands in the UK and US, including Skyscanner, Dyson, and Amazon, have been targeted through fake Google Search Ads, resulting in cases of identity theft and significant financial damage.

Search Engine Land infograph Screenshot Source: Search Engine Land

Practical Solutions for Brand Protection Teams Against Fraudulent Ads Online

Brand protection teams can effectively combat fraudulent online ads by implementing a cohesive strategy that includes these key elements:

AI-powered Investigation Tools

  • Utilize AI-powered Case Management Systems (ACMS): Implement AI-powered systems that can easily scan through high volumes of incoming reports, connect all the dots, and prioritize repeat offenders for swift takedowns.

  • Implement AI Monitoring Tools: Use AI-based tools that can continuously monitor platforms like Facebook, Instagram, and Google Ads for keywords, deceptive URLs, and content. These tools can identify patterns in scam ads, such as bot-like behavior, suspicious URL structures, and AI-generated content, flagging them for quick action.

  • Natural Language Processing (NLP) to Detect Fake Reviews: Deploy NLP systems to detect AI-generated fake reviews. These systems analyze the language, tone, and style of reviews across platforms like Trustpilot and TripAdvisor, making it easier to filter out illegitimate content.

  • Image Recognition Technology: Leverage AI-powered image recognition tools to detect ads using unauthorized brand images. By comparing brand-approved ads with suspicious content, brands can quickly take down fraudulent ads before they do any harm.

Collaborating with Marketing Teams

A highly effective way to detect fake online ads is collaborating with your marketing teams or digital ad agencies. For instance, SEO (search engine optimization) specialists can help brand protection teams identify keywords frequently targeted by bad actors, while digital marketing managers can pinpoint interests of your target audience that may be exploited by fraudsters.

With this insight, you can work together to build defenses, such as using “invisible digital watermarks” or subtle markers to distinguish authentic ads from counterfeits. These tactics, combined with marketing expertise, greatly improve efforts to take down fraudulent online ads.

Key legal mechanisms to assist brand protection include the Digital Services Act (DSA) in the EU, the Digital Millennium Copyright Act (DMCA) in the US, the Uniform Domain-Name Dispute-Resolution Policy (UDRP), and the Trademark Clearinghouse (TMCH). These regulations provide pathways for reporting and removing infringing content and trademarks from misuse in ads and domain names.

Platform-Specific Brand Protection Programs

Real-Time Threat Intelligence Sharing

  • Cross-Industry Collaboration: Collaborate with brand protection alliances or networks that share real-time threat intelligence about fraudulent ads, scammer tactics, and new bad actor techniques. Such networks can rapidly inform brands about emerging risks, allowing them to proactively address these threats.

  • Early Warning Systems: Advanced systems that use data from threat intelligence networks, previous cases or monitoring tools to alert brand protection teams about new fraudulent campaigns, allowing them to respond faster.

How Can Hubstream Help You?

Real-time Threat Intelligence Analytics: A unified platform to collect, analyze, and share actionable insights via real-time dashboards with cross-functional teams worldwide.

Comprehensive Data Management: Manage infringement data across various platforms of social media, e-commerce & other digital outlets.

Solving the ‘Whack-a-Mole’ Problem: Automatically identify repeat offenders and stop the recurring issue of bot-generated ads.

Entity Tracking and Link Analysis: Seamlessly map connections and relationships between entities, helping to uncover larger infringement networks and patterns.

Interested in learning more?