Online retailer likely to lose millions? Blame fraudsters

Fraud on the rise as the world looks the other way

Last year was an unprecedented year on several accounts. For advertisers and fraudsters alike, it meant a significant increase in activity, both positive and negative.

For advertisers - a historic surge in the number of app downloads and increasing demand for new apps and content; we might even go out on a limb and call it the year of user acquisition.
For fraudsters - a huge opportunity to exploit and further advance their reach as the world was looking the other way, they were busy at work injecting more fraud than ever before.

M-commerce: Fraud at a glance

This case is centered around an online retailer with a mobile app that has a strong presence in iOS and Android. After giving Scalarr a chance, our engine got to work and what we found was nothing short of surprising.

With over 330K installs analyzed, we found 29% of fraudulent billable installs where 87,818 had fraudulent CPI and 9,638 had fraudulent CPA billable conversions. When considering average USD costs of $1 for CPI and $2 for CPA, the direct losses due to ad fraud totaled $107,094 dollars.

Without any form of optimization, if the client had spent an approximate of 5% every month on fraudulent sources, the potential fraud spend in 2021 alone would have amounted to $1,704,629 dollars, meaning fraud losses of $3-6K per day.

It’s hard not to be rattled by numbers like these, and even harder to ignore is the fact that fraud left unchecked can cause severe damage to advertising budgets.

Fraud-free ticket

All in all, the client took immediate action with the help of Scalarr that led them to save large sums of money and avoid multimillion-dollar losses due to fraudulent traffic that was permeating their part of the funnel.

Like kids in a candy store, fraudsters will go wild if left to run around without supervision; and it’s cases like this with yearly losses close to $2 million dollars that exemplify the importance of having a robust anti-fraud strategy to avoid handing ad money to fraudsters.

Our AI-powered toolset is the only real solution against fraud, providing unrivaled accuracy that is unmatched by any competitor in the market.

Thanks to the timely and effective implementation of Scalarr Protection Suite, our collaboration with this online retailer proved successful, helping them identify the fraudulent, ineffective traffic that was permeating their advertising funnel.

As soon as anomalies signaled fraud, the triggers in place were activated for us to take action, help our client eliminate these fraudulent traffic sources, and negotiate refunds as needed to save their budget.

The recipe for successful fraud elimination

Unrivaled Accuracy

Our anti-fraud solutions are powered by an AI engine embedded with powerful algorithms that are capable of detecting and protecting our clients against every single type of fraud, regardless of their level of sophistication. Analyzing millions upon millions of data points in short time frames, we guarantee up to 97% in accuracy when detecting fraud. A number that is unrivaled by any other anti-fraud solution in the market.

Superior Analytics

Our Data Science and Analytics teams are not only experts but passionate advocates in the fight against fraud and in the search for a more transparent ad ecosystem. With a common goal in mind, our specialists perform numerous tests and deploy cutting-edge techniques while leveraging best-in-class technology to detect even the slightest anomaly that may signal fraud.

Suite of Detection and Protection Solutions

Not satisfied with being the most accurate solution in the market, Scalarr also boasts a comprehensive suite of products and services that protect advertisers across the entire ad funnel, namely the Scalarr Protection Suite and Scalarr DeepView. This is thanks to our strategic vantage point that enables us to look at data from different angles, working to detect and put a stop to fraud every step of the way.

Hassle-Free Tools

With a granular, robust dashboard, our clients can easily access and see the current state and quality of their traffic, thus powering strategic decision-making activities and initiate refund negotiations to help our clients save money that might otherwise end up in fraudsters’ pockets. With easy implementation and little effort on their part, our clients benefit from our tools quickly and efficiently.

>90% Success Rates In Rejection Claims

Granular data supports decision-making tasks for clients who successfully negotiate refunds with the end-to-end help from expert resources at Scalarr.

About us

Scalarr is an AI-powered cybersecurity and anti-fraud solutions company specifically built to protect clients by bringing transparency into their data and preventing financial loss.

Our innovative, Machine Learning-based fraud detection tool for app developers and marketing teams analyzes ad campaign data at all stages, starting from the click and unlocking post-install event analytics to protect your traffic and give optimal results for your ROAS increase.