How mobile gaming companies can combat app fraud

Gaming is the trailblazer within the mobile industry. It’s followed a remarkable trajectory fuelled by savvy marketing teams and a sophisticated approach to data. And it shows no signs of slowing down with one report stating a projected 30% year-over-year growth in mobile gaming through to 2022.

Yet with more people playing mobile games due to lockdown restrictions, Covid-19 has presented a favourable environment for fraudsters. The cost of this could be monumental: The World Federation of Advertisers forecast that by 2025, £38bn will have been wasted in fraudulent activity annually – that is millions of advertising spend being flushed away each day.

At a time when marketers are just starting to recover from ad budget cuts, it is all the more important they safeguard their expenditure. Gaming companies must be vigilant and remain one step ahead of trends and new tactics, in order to safeguard spend and combat app fraud.

Leverage insights

Before attempting to combat fraud, gaming companies must leverage insights and understand the severe cost of app fraud.

Recent research shows global app install ad spend in gaming totalled $22bn in 2019, with spend projected to more than double by 2022. With billions being spent annually on in-app advertising and user acquisition, the mobile gaming industry is particularly enticing for fraudsters.

The good news for gaming companies is that non-gaming apps face a greater risk of install fraud. One in every four non-organic installs is fraudulent among non-gaming apps, while gaming apps see a much lower rate of 3.8%. This is largely due to gaming companies being savvy at avoiding fraud, having the right technology in place to identify and combat fraudulent activity at the app install stage.

The bad news is that, despite mobile gaming apps being equipped with effective tools, the industry has witnessed around $95m being exposed to fraud this year. Gaming companies must remain vigilant, using these key insights to keep fraudsters at bay.

Be vigilant

Although the mobile gaming industry had grown exponentially to defend itself properly against app fraud, insights show the potential amount of damage is still extremely high. By adopting a culture of vigilance, gaming companies can more effectively combat fraud.

Marketers and gaming app developers must spot the red flags and be vigilant about new trends. By responding to changes in consumer behaviour by leveraging insights, mobile gaming companies can better identify anomalies within data sets.

In the midst of the pandemic, gaming app installs rose by 25% in organic, and 35% in non-organic installs, leading overall gaming app spend to rise by 35%. Though demand has begun to decrease in recent months, marketers and app developers need be aware that a rise in app engagements comes hand in hand with a rise in fraudulent activity.

With a substantial increase in in-app fraud as fraudsters eye lucrative cost per action pay outs on top of cost per install, it is clear that vigilance is crucial and mobile gaming companies need to be ready to adapt.

Adapt to changing threats

Fraud methods are constantly evolving and adapting to solutions in the market. While fraudsters continue to develop newer, more sophisticated forms of attack, companies must adapt to changing threats.

For instance, bad actors are becoming more advanced, using bots that can mimic user behaviour on mobile devices. As this engagement appears genuine, it is difficult to detect fraudulent activity, such as fake clicks and fake installs. Fraudsters have also become experts at finding loopholes in apps with weak protection.

By investing further in multi-layer security, mobile gaming companies can put in place measures to automatically identify rising levels of fraud and remain one step ahead of new tactics. Staying protected and applying more sophisticated anti-fraud solutions is vital.

Fraud won’t disappear anytime soon. With billions in stolen revenue on the table, the mobile gaming industry needs to continue to adapt in order to combat fraud.

After experiencing AppsFlyer’s commitment to product innovation and client service, David Llewllyn joined AppsFlyer in May 2019 as marketing director EMEA. A talented marketer himself, he has built a career in the technology industry since 2006 (and that’s not including his start as a mobile phone salesman during his university years). With a portfolio spanning Shazam, Amazon, Skyscanner and Hailo, Llewllyn is incredibly enthusiastic about all things mobile and exploring how businesses build their growth strategy, specifically in the app economy.