An investigation by BuzzFeed News reveals that these seemingly separate apps and companies are today part of a massive, sophisticated digital advertising fraud scheme involving more than 125 Android apps and websites connected to a network of front and shell companies in Cyprus, Malta, British Virgin Islands, Croatia, Bulgaria, and elsewhere.
Fraud detection firm, Pixalate, first exposed one element of the scheme in June. At the time, it estimated that the fraud being committed by a single mobile app could generate $75m a year in stolen ad revenue. After publishing its findings, Pixalate received an anonymous email from a person connected to the scheme who said the amount stolen was closer to 10 times that amount. The person also said the operation was so effective because it works “with the biggest partners [in digital advertising] to ensure the ongoing flow of advertisers and money.”
