Digital advertising fraud now mimics humans too well, says report

A new study says digital ad fraud has tripled in sophistication, with as much as 45% of seemingly valid programmatic traffic failing deeper checks

Digital advertising fraud has increasingly become a complex, end-to-end threat that now imitates human behaviour so convincingly that older verification systems can no longer detect it, according to a report by mFilterIt.

 

The report titled Beyond the Linear Lens: Ad Fraud in 2025 highlighted a steep rise in digital ad fraud, warning that the sophistication of fraudulent activity has tripled in the past two years, largely fuelled by advances in artificial intelligence (AI).

 

“In 2025, fraud does not operate at a single touchpoint. It behaves like a network, moving fluidly across channels, devices, and consumer paths,” the report said.

45% programmatic traffic failed deeper checks

According to the study, between 30 per cent and 45 per cent of programmatic traffic initially tagged as ‘valid’ failed deeper validation checks. Even within tightly controlled Walled Garden ecosystems, 9 per cent to 18 per cent of activity showed signs of invalid traffic.

 

The report also flagged a continued rise in programmatic exposure to Made-for-Advertising (MFA) sites and AI-generated low-quality content environments. Display and video platforms were similarly under stress, with frequency cap breaches recorded in 15 per cent to 18 per cent of campaigns.

Affiliate networks most vulnerable

Affiliate networks emerged as one of the most exposed channels. The report attributed 43 per cent of all invalid traffic to these networks, driven by practices such as incentivised actions, click spamming and organic hijacking.

 

mFilterIt co-founders Amit Relan and Dhiraj Gupta said, “Fraud is no longer a traffic problem — it is a trust problem.”

How digital advertising is expanding globally

The study noted that digital advertising continues to grow at an unprecedented pace. Global digital ad spend is projected to rise 7.9 per cent in 2025, reaching $678.7 billion and accounting for 68.4 per cent of total advertising outlays.

 

Growth is being propelled by a rapidly diversifying omnichannel mix, including retail media (13.9 per cent), social media (9.2 per cent), programmatic (8.4 per cent) and search (8.3 per cent). Streaming platforms also remain strong, with Connected TV and over-the-top (OTT) expected to grow 10.9 per cent year-on-year.

 

As brands expand across web, app, video, commerce and creator ecosystems, the report noted that most organisations still measure performance in silos. Brand teams optimise for reach and visibility, while performance teams pursue installs, leads and conversions.

 

“In reality, the digital consumer journey is no longer linear and quality at the top of the funnel directly determines the integrity of outcomes at the bottom,” the report said.