1. Augustine Fou- 1 -
Digital Ad
Fraud Case File
Dr. Augustine Fou
http://linkd.in/augustinefou
acfou @mktsci .com
June 2014
2. Augustine Fou- 2 -
Business Insider (June 2014)
http://www.businessinsider.com/slavik-evgeniy-mikhailovitch-bogachev-stole-
100-million-lives-happily-in-russia-2014-6
“The U.S. Department of
Justice began dismantling
the Cryptolocker and
Gameover Zeus botnets this
week, freeing up to 1
million computers from
malware controlled by
legendary Russian hacker
"Slavik," real name
Evgeniy Mikhailovitch
Bogachev.”
Hacker Who Allegedly Stole $100 Million Lives In Luxury In Russia
3. Augustine Fou- 3 -
AdAge (June 2014)
Florida-Based Ad
Fraudsters Skim Millions
From Advertisers, Then
Disappear
Scheme Shows How Easy It Is to Steal
Money From the Ad-Tech Ecosystem
“By the time CCM got caught in March, it was generating at least $1.5 million
dollars a month, according to online video security firm Telemetry, which uncovered
the scam by noticing that nearly all of CCM's traffic originated from five internet
service providers used by businesses, not by consumers. High traffic volume from
business ISPs is a strong hint something is amiss.”
http://adage.com/article/digital/florida-ad-fraud-operation-skims-millions-advertisers/293631
4. Augustine Fou- 4 -
Financial Times (May 2014)
FT.com May 26, 2014
Mercedes online ads viewed
more by fraudster robots
than humans
“found that 57 percent were
‘viewed’by automated
computer programs rather
than real people.”
5. Augustine Fou- 5 -
TubeMogul discovered three new
botnets—Blog Bot, Annex Bot and 411
Bot—that are alarming in their
sophistication, TubeMogul’s chief
strategist Jason Lopatecki said.
“There were three major bots identified
that haven’t been reported yet,”
Lopatecki said. “They’re using a
number of technologies that haven’t
been seen before. So the complexity is
getting bigger with each generation of
fraud.”
AdWeek (Apr 2014)
AdWeek April 2014
6. Augustine Fou- 6 -
WSJ (Mar 2014)
A 'Crisis' in Online Ads:
One-Third of Traffic Is
Bogus
“As Digital Advertising Climbs
Toward $50 Billion This Year,
Marketers Battle Fraudulent
Visitors. Telemetry's investigation
of Verizon's ad purchases found
more than $1 million in fraud.”
Source: http://online.wsj.com/news/articles/SB10001424052702304026304579453253860786362
7. Augustine Fou- 7 -
Video Ad Fraud (Feb 2014)
How P&G, AT&T
And 4 Other Major
Companies Were
Duped Into Running
Ads On X-Rated
Sites – By: Jim Edwards
Read
more: http://www.businessinsider.c
om/major-brands-running-ads-on-
porn-sites-2014-2
“Clients can lose up to $488,000 a month paying for fraudulent ad
clicks.”
8. Augustine Fou- 8 -
Video Ad Fraud (Dec 2013)
Leaked Document Shows How Big Brands'
Video Ad Budgets Get Spent On Asian Porn
Sites – By: Jim Edwards
Read
more: http://www.businessinsider.com/telem
etry-document-ad-budgets-asian-porn-2013-
12#ixzz2sawbKAL4
“A large British packaged goods
company that sells several
household name brands in the U.S.
was defrauded of $488,000 when its
$10,000-a-day video ad budget was
spent on a network of junk web
sites”
9. Augustine Fou- 9 -
AdWeek (Aug. 2013)
REPORT: AOL's $400
Million Video Ad
Business Has Tons Of
Bogus Inventory
Read more:
http://www.businessinsider
.com/aol-adaptv-deal-
comes-with-bogus-ad-
inventory-adweek-says-
2013-8#ixzz34X1TqV00
“AOL just paid $405 million for a video ad
business in which up to 80% of ads are bogus,
according to Mike Shields at Adweek”
10. Augustine Fou- 10 -
Affiliate Sales Fraud (April 2013)
“eBay paid Hogan a
staggering $28 million
in affiliate marketing
sales commissions over
the years, according to
court papers.”
How eBay Worked With The FBI To Put Its Top Affiliate
Marketers In Prison
Read more: http://www.businessinsider.com/ebay-the-fbi-shawn-
hogan-and-brian-dunning-2013-4#ixzz34X5Mi6Jj
11. Augustine Fou- 11 -
Dr. Augustine Fou – Digital Consigliere
“I research ad fraud so I can advise
clients on how to detect and mitigate it.
This has the most direct mpact on the
ROI of their digital marketing
programs.”
FORMER CHIEF DIGITAL OFFICER, HCG (OMNICOM)
MCKINSEY CONSULTANT
CLIENT SIDE / AGENCY SIDE EXPERIENCE
PROFESSOR AND COLUMNIST
ENTREPRENEUR / SMALL BUSINESS OWNER
PHD MATERIALS SCIENCE (MIT '95) AT AGE 23
@acfou
ClickZ Articles: http://bit.ly/augustine-fou-clickz
Slideshares: http://bit.ly/augustine-fou-slideshares
LinkedIn: https://www.linkedin.com/today/author/84444-augustinefou