A cost-per-action model may not be enough to prevent in-app fraud

New Ideas in MarketingEssential news for marketers, summarised by YouGov
July 30, 2020, 1:48 AM UTC

At 48%, finance apps have the highest app install fraud rate.

Despite gaming apps seeing success in reducing exposure to fake app install frauds, they remain susceptible to other fraud types, such as in-app fraud. Despite the cost-per-action (CPA) model being a “shield” against ad fraud, fraudsters have been able to mimic users’ in-app behaviour, something that was thought to be harder to do.

This has made apps replying on CPA model more exposed to in-app event frauds. As CPA campaigns usually generate higher user value, the payouts are larger for fraudsters.

Michel Hayet of AppsFlyer says fraudulent activity could pass as a “quality” media source if it goes unnoticed. Developers must be at par in vigilance with fraudsters, since the latter group is better at identifying market trends than others in the ecosystem.

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