AI both causes and combats ad fraud in gaming industry

According to a recent report by Robust Fundamentals, India has emerged as the largest gaming market in the world, boasting a user base of 568 million gamers and over 9.5 billion gaming app downloads in 2023. This significant growth presents substantial opportunities, not only for legitimate businesses but also for bad actors and fraud players who seek to exploit the burgeoning market.

Recent advancements in Generative AI, showcased by industry leaders like Google and OpenAI, have demonstrated the rapidly accelerating capabilities of AI technologies. These advancements have implications across multiple industries, including gaming, and bring both exciting possibilities and potential threats.

The founder of an independent agency, who spoke to exchange4media on the condition of anonymity, highlighted that the rapid rise of gaming in India has attracted not only a vast audience but also those with malicious intentions. Fraudsters are taking advantage of the increased mobile gaming traffic, utilizing tactics such as install hijacking and click flooding. These methods not only drain advertisers' budgets but also distort marketing data and waste valuable resources. Generative AI exacerbates the problem by enabling more sophisticated fraud schemes, posing significant risks to advertisers, including budget depletion and reputational damage.

Samir Asher, Founder and COO of Tonic Worldwide, confirmed the rise in ad fraud within the gaming sector. He pointed out that this surge has led to an increase in click flooding and fake in-app activity. Casual gamers, often unaware of the technological risks, are enticed to download games and applications that contain malware and intrusive in-game ads. These ads compromise the security of players' devices by collecting sensitive data and potentially causing device malfunctions.

India's position as the largest mobile gaming market is underscored by the projected growth of its gaming industry, expected to more than double from around 3 billion USD in 2023 to 7.5 billion USD in 2028. This growth has caught the attention of major gaming console and PC device manufacturers, who are keen to tap into urban India's increasing appetite and disposable income for high-end gaming systems. Additionally, gaming-adjacent activities like streaming and vlogging are gaining popularity, attracting audiences and advertisers alike.

Rohit Agarwal, Founder and Director of Alpha Zegus, has observed instances where trollers misuse AI to manipulate livestream clips of gaming content creators, spreading hate speech within the community. Trollers have also used AI to bully female creators by morphing their images or mass-reporting their social media accounts. Ad fraud extends beyond identity theft, spreading false messages and damaging reputations. Agarwal emphasizes that there is no separate solution for gaming; rather, universal solutions must be implemented to address these issues.

Experts caution advertisers about the risks of click flooding from ads in gaming apps, which can lead to significant financial and reputational losses due to algorithm manipulation. To mitigate these risks, advertisers should partner with reliable and verified mobile ad networks and actively monitor their ad campaign data.

There is a consensus among experts that gaming platforms and industry stakeholders need to collaborate to enhance moderation standards across platforms. By doing so, they can prevent fraudulent advertisers from displaying their ads. Additionally, improving algorithms to detect signs of fraudulent advertisements and investing in advanced anti-fraud mechanisms and detection systems is advisable for advertisers and industry stakeholders.

Devam "Dev" Vyas, Vice President of Esports at Gods Reign, an Indian esports organization, advocates for the implementation of robust solutions such as standardized verification processes and fostering transparency and accountability across the industry. By doing so, stakeholders can effectively combat ad fraud and maintain the integrity of the gaming ecosystem.