The Huge Problem of Click Fraud and 13 Strategies To Combat Click Fraud in 2025
- Reading time: 8 minutes
- Updated: Oct 23rd, 2024
As digital advertising continues to grow, so do the threats that can undermine its effectiveness. One of the most persistent and costly threats is click fraud, an issue that impacts advertisers, publishers, and platforms alike. In 2024, click fraud is set to reach unprecedented levels, making it crucial for stakeholders to understand its scope and the measures necessary to mitigate its effects.
What Is Click Fraud?
Click fraud occurs when fraudulent clicks are generated on digital ads, either manually or through automated bots. These clicks often serve no legitimate purpose and are typically used to inflate costs for advertisers, skew analytics, or create an unfair competitive advantage. While click fraud is not new, it has evolved significantly over the years, and today it affects almost every sector that relies on digital marketing.
Key Click Fraud Statistics for 2025
Understanding the current trends and numbers is essential in grasping the true scale of click fraud in 2024. Below are some key statistics that highlight the growing impact of this problem:
- Global ad fraud losses are expected to reach $100 billion by the end of 2024. This marks a significant increase from previous years and underscores the urgent need for enhanced fraud detection technologies.
- 40% of all paid clicks are estimated to be fraudulent. This figure includes both malicious bots and human-driven fraudulent clicks, indicating that nearly half of paid traffic may be illegitimate.
- The financial sector and e-commerce industries are the hardest hit, with click fraud rates as high as 50% in some cases.
- In-app and mobile ad fraud continue to rise, with click fraud affecting over 30% of all mobile ad campaigns. This trend is particularly concerning as mobile devices dominate user activity.
- Fraudulent activity is now spread across multiple ad platforms, including Google Ads, Facebook Ads, and programmatic advertising platforms, making it difficult for advertisers to safeguard their campaigns.
Types of Click Fraud in 2025
The landscape of click fraud is increasingly complex, with fraudsters employing more sophisticated methods to deceive advertisers and publishers. Below are the most prevalent types of click fraud in 2024:
1. Bot Traffic
Bots are automated programs designed to mimic human interactions with digital ads. These bots can click on ads repeatedly, driving up costs for advertisers without delivering any meaningful engagement or conversions. In 2024, bot traffic is more sophisticated than ever, with advanced bots capable of imitating human behavior, such as mouse movements and scrolling.
2. Click Farms
Click farms involve groups of individuals manually clicking on ads to simulate legitimate traffic. This form of fraud is often used by unscrupulous competitors or bad actors looking to sabotage advertising campaigns. Click farms remain a significant issue in 2024, particularly in developing regions, where workers are paid to perform these activities at scale.
3. Competitor Click Fraud
One of the most damaging forms of click fraud, competitor click fraud, occurs when competitors intentionally click on a rival’s ads to exhaust their ad budget. This results in higher costs for the victimized company and a reduction in their ad visibility. Competitive industries, such as finance and legal services, are particularly vulnerable to this type of fraud.
4. Ad Stacking
Ad stacking occurs when multiple ads are layered on top of each other in a single ad placement. Users unknowingly click on multiple ads at once, but only the top ad is visible. This practice allows fraudsters to collect multiple ad impressions and clicks from a single user interaction, driving up costs for advertisers while providing no real value.
5. Pixel Stuffing
Pixel stuffing is a technique where ads are placed into a tiny, nearly invisible pixel on a webpage. These ads are technically displayed and clicked, but users never see them. In 2024, pixel stuffing has become more difficult to detect as fraudsters use more complex methods to disguise these tiny ad placements.
The Financial Impact of Click Fraud
The financial toll of click fraud is staggering and continues to rise as digital ad spending grows globally. According to industry reports, the global cost of ad fraud is expected to exceed $100 billion by the end of 2024, with much of that driven by click fraud.
Cost to Advertisers
- Wasted ad spend: Advertisers are paying for fraudulent clicks that will never convert into real customers. In industries with high click fraud rates, up to half of an ad budget can be wasted.
- Decreased ROI: Click fraud distorts the effectiveness of campaigns, leading to misleading performance data and lower returns on investment.
- Increased competition: Fraudulent clicks can artificially drive up the cost-per-click (CPC), making it more expensive for legitimate advertisers to compete for ad placements.
Cost to Publishers
- Decreased trust: When publishers are found to host fraudulent traffic, they risk losing advertisers and damaging their reputations.
- Penalties from ad platforms: Publishers who engage in or fail to prevent click fraud on their sites may face penalties from ad networks, including suspension or removal from ad programs.
Pre-click vs. Post-click Prevention Strategies
In 2024, preventing click fraud requires a multi-faceted approach, leveraging both technology and strategic practices. Below are the key steps advertisers and publishers can take to safeguard their digital campaigns. These are generally classified as pre- and post-click strategies.
Pre-click prevention strategies work by analysing various signals and patterns before a user clicks on an ad to determine if the click is likely to be fraudulent.
These signals can include:
- IP address analysis: Identifying suspicious IP addresses or ranges associated with known fraudsters or data centres.
- Device reputation: Analysing device characteristics and behaviour to identify potentially compromised devices or emulators.
- Traffic source analysis: Examining referring URLs and traffic sources to identify suspicious patterns or low-quality websites.
- Behavioural analysis: Monitoring user behaviour, such as mouse movements and navigation patterns, to detect non-human activity.
Examples:
- Project Honeypot: (explained below)
- Invisible CAPTCHA: (explained below)
- Blacklisting: Blocking known fraudulent IP addresses or sources.
- Traffic filtering: Using tools to filter out bot traffic based on various criteria.
Post-Click
Post-click strategies identify and mitigate fraudulent clicks after they have occurred.
Post-click strategies analyse user behaviour and engagement after they click on an ad to determine if the click is genuine or fraudulent. These factors can include:
- Bounce rate: A high bounce rate (users leaving the landing page immediately) can indicate fraudulent clicks.
- Time on site: Very short visit durations can suggest bot activity.
- Conversion patterns: Unusual or unrealistic conversion patterns (e.g., a sudden surge in conversions from a specific source) can be a red flag.
- Lead quality: Analysing the quality of leads generated from ad clicks to identify fake or invalid leads.
Examples:
- Analysing website analytics: Monitoring website traffic and user behaviour for suspicious patterns.
- Lead validation: Implementing systems to verify the authenticity of leads generated from ad campaigns.
- Fraud detection tools: Using specialised tools that analyse post-click data to identify and flag fraudulent activity.
- Reporting to ad platforms: Providing evidence of fraudulent clicks to ad platforms for potential refunds or adjustments.
Key differences
Feature | Pre-click | Post-click |
---|---|---|
Timing | Before the click | After the click |
Focus | Prevention | Detection and mitigation |
Data used | IP address, device, traffic source, behavior | Bounce rate, time on site, conversion patterns, lead quality |
Tools | Project Honeypot, invisible CAPTCHA, blacklisting, traffic filtering | Website analytics, lead validation, fraud detection tools, reporting to ad platforms |
Why both are important
A comprehensive click fraud prevention strategy should incorporate both pre-click and post-click measures. Pre-click strategies help to proactively block fraudulent clicks, while post-click strategies help to identify and mitigate any fraudulent clicks that slip through the cracks. By combining these approaches, you can effectively protect your ad campaigns and ensure that your budget is being used to reach real, interested users.
We have collated 13 strategies you can implement to reduce your risk of suffering from click fraud on the pre- and post click side:
1. Implement FingerprintJS (Pre Click)
FingerprintJS is a browser fingerprinting technology that creates a unique “fingerprint” of each website visitor based on their browser and device characteristics. It helps identify bots even when they try to mask their identity by changing their IP address or location. This allows you to block repeat offenders and prevent fraudulent clicks.
2. Engaging with Platforms for Reporting Fraud (Pre Click)
Agencies should maintain open lines of communication with advertising platforms like Google Ads and Facebook Ads. Reporting suspicious activities promptly can lead to quicker investigations and resolutions. Steps for effective communication include:
- Document Evidence: Collect data and screenshots of suspicious clicks.
- Timely Reporting: Ensure reports are submitted promptly to facilitate swift action.
- Ask for Refunds: The platforms all realise that click-fraud is a problem but do little to combat it, because they benefit from the clicks! If you ask, you are likely to get refunds. That, however, usually leaves the cause of the issue unsolved.
3. Exploring Emerging Technologies (Pre Click)
As technology evolves, agencies are exploring emerging solutions such as blockchain technology for transparency in ad transactions. These innovations promise to provide more secure environments for advertisers. Potential benefits of emerging technologies include:
- Transparency: Enhances trust in ad transactions by providing verifiable data.
- Decentralisation: Reduces the risk of fraudulent activities by eliminating single points of failure.
4. Leveraging Click Fraud Insurance (Pre Click)
Some agencies are turning to click fraud insurance as a financial safety net. This innovative approach provides a layer of protection, ensuring that clients are compensated for losses incurred due to click fraud. Key considerations for click fraud insurance include:
- Coverage Scope: Understand what types of fraud are covered.
- Claim Process: Familiarise yourself with the claims procedure to ensure quick recovery of losses.
5. Educating Clients on Click Fraud (Pre Click)
Client education is essential in the fight against click fraud. Agencies must communicate the risks and signs of fraudulent activity, empowering clients to recognise and report issues. Educational initiatives for clients include:
- Workshops and Webinars: Host sessions to discuss click fraud trends and prevention strategies.
- Resource Guides: Provide comprehensive materials detailing how to monitor ad performance effectively.
6. Collaborating with Industry Experts (Pre Click)
Partnerships with cybersecurity firms and click fraud prevention specialists enhance an agency’s capabilities in combating fraud. Collaborating with experts can lead to the development of customized solutions tailored to specific client needs.
Benefits of Industry Collaboration
- Access to Expertise: Gain insights from professionals specializing in fraud prevention.
- Resource Sharing: Leverage collective resources for improved outcomes.
7. Continuous Optimisation of Campaigns (Pre Click)
Agencies are focusing on the continuous optimization of ad campaigns to minimize exposure to click fraud. This involves regularly assessing campaign performance and adjusting targeting strategies based on real-time data.
Optimisation Techniques
- A/B Testing: Experiment with different ad placements and messages to find the most effective combinations.
- Geo-Targeting: Refine targeting to focus on regions less prone to fraudulent activity.
8. Regular Auditing of Ad Performance (Pre Click)
Conducting regular audits of ad performance helps agencies identify discrepancies that may indicate click fraud. These audits should assess key performance indicators (KPIs) and compare them against industry benchmarks.
Audit Checklist
- Click-Through Rates (CTR): Monitor unusually high CTRs that may suggest fraud.
- Conversion Rates: Evaluate if clicks are converting into desired actions.
9. Implementing Advanced Analytics Tools (Post Click)
Agencies are increasingly utilising advanced analytics platforms that employ machine learning algorithms to detect unusual patterns indicative of click fraud. These tools analyze traffic sources, user behavior, and click patterns to identify and block fraudulent activities in real-time. The benefits of analytics in fraud detection include
- Real-Time Monitoring: Enables immediate response to suspicious activities.
- Pattern Recognition: Machine learning identifies anomalies that human oversight may miss.
10. Utilising IP Exclusion Lists (Post Click)
Another effective method is the creation of IP exclusion lists. By identifying and blocking known fraudulent IP addresses, agencies can significantly reduce the number of invalid clicks. Steps to create effective IP exclusion lists include:
- Data collection: Gather data on click patterns and identify IPs generating suspicious activity.
- Regular updates: Continually update the list to adapt to new fraudulent behaviors.
- Service providers: We have been using the British provider Lunio for this service at Visible Ads. PPC Protect and ClickCease are other platforms that should be evaluated.
11. Employing Bot Detection Technologies (Post Click)
Bot detection technologies play a critical role in identifying non-human traffic. These systems utilize behavioral analysis to differentiate between legitimate users and automated scripts. Features of Bot Detection systems include:
- Device Fingerprinting: Tracks unique device characteristics to identify bots.
- Behavioural Analysis: Monitors user interaction patterns to flag anomalies.
Example: Project Honeypot
Project Honeypot is a system that sets traps for spambots. It involves creating hidden links or forms on your website that are invisible to regular users but easily detectable by bots. When a bot interacts with these traps, it gets flagged as suspicious.
It helps identify and block bots that are trying to scrape your website or submit spam, which can improve the quality of your leads and protect your site from malicious activity.
YouTube Video: SSH Honeypot in 4 Minutes – Trap Hackers in Your Server
12. Implementing CAPTCHA and Other Verification Tools (Post Click)
Integrating CAPTCHA and other verification methods can deter automated clicks. These tools require user interaction, making it more challenging for bots to generate fraudulent clicks. Effectiveness of verification tools is determined by:
- User Engagement: Enhances user experience while filtering out non-human traffic.
- Customisability: Allows agencies to tailor verification measures based on client needs.
Invisible CAPTCHA
A type of CAPTCHA (Completely Automated Public Turing test to tell Computers and Humans Apart) that works in the background without requiring user interaction. It uses various signals, like mouse movements and browsing behavior, to distinguish between humans and bots. This provides a seamless user experience while still effectively blocking bots.This can lead to higher conversion rates as users aren’t deterred by annoying CAPTCHA challenges.
YouTube Video: What is Google Invisible reCAPTCHA?
13. Implement Paywalls (Post Click)
A system that requires users to pay a small fee to access certain content or features on your website. While not specifically designed for click fraud prevention, paywalls can deter bots and low-quality traffic. Since bots are unlikely to pay for access, this can help ensure that your ad clicks are coming from genuine users.
A Proactive Approach to Combatting Click Fraud
As digital advertising landscapes continue to evolve, agencies must remain vigilant against click fraud. By adopting a multifaceted approach that combines technology, education, and proactive measures, agencies can safeguard their clients’ investments and enhance the integrity of their advertising efforts. Staying ahead of the curve in 2024 will require continuous adaptation and innovation to outsmart fraudsters effectively.