NEW YORK — An “FM Scam” has been uncovered as the newest “audio fraud” scheme to surface, a matter in which fraudsters pretended to be some 500,000 devices, including phones and tablets, that used for music streaming.
The reason? To fake engagement with audio ads.
The fakery was identified and mitigated by DoubleVerify’s Fraud Lab, which used a proprietary combination of AI-powered technology and human review to undercover the activity.
“FM Scam” represents the second significant global scheme targeting audio spending, emerging shortly after the DV Fraud Lab discovered BeatSting, the first major invalid traffic (IVT) scheme aimed at audio traffic.
During the peak of both schemes, the combined financial impact on unprotected advertisers exceeded $1 million in spend monthly.
“FM Scam” perpetrators falsified audio traffic using dedicated servers. “They also spoof a wide range of devices typically used for playing audio content,” DoubleVerify explained. “This tactic enables fraudsters to blend their invalid traffic with legitimate traffic in attempts to remain undetected.”
DV estimates that the fraudsters behind the scheme spoofed connected TV devices, audio players, smartwatches and, for the first time, smart speakers.
Fraudsters auction their invalid traffic through supply-side platforms (SSPs), exchanges and ad networks, DoubleVerify explained.
The result? “FM Scam” generates up to 100 million ad requests monthly.
“In addition to defrauding advertisers, the fraudsters also are impacting the yield of quality audio sellers by siphoning money away from legitimate audio channels,” DoubleVerify noted.
The company’s Chief Innovation Officer, Jack Smith, commented, “Audio is rapidly becoming a lucrative target for fraudsters. The range of players and devices used to stream audio content sets this environment apart from other media types. Fraudsters tend to focus on emerging media, like audio, that attracts advertising investments but lacks comprehensive measurement standards.”
“FM Scam” further blends in with legitimate traffic by mimicking the behavior of a typical continuous ad session. Unlike BeatSting, which switches between devices after generating a certain number of impressions, FM Scam creates longer, uninterrupted sessions. “This randomizes the traffic pattern to appear more human-like, as opposed to delivering a consistent, fixed amount of impressions across devices,” DoubleVerify said.
