Protecting Your Brand: How Residential Proxies Can Help Prevent Ad Fraud

Gaurav Rathore
Gaurav Rathore

Tech Writer

His write-ups blend creativity, personal experience, and tailored technical advice, meeting reader needs effectively.

5 min read

Advertising has been a major part of all organizations as it helps them generate revenue. But did you know that there are a lot of frauds that are being done and are costing billions of dollars?

One of the biggest ripoffs was done by Aleksandr Zhukov who considered himself the fraud king and was able to make $3-5 million a day by fake click video advertisement. (Digital Marketer: The Biggest Ad Fraud Cases and What We Can Learn From Them).

So, what is the best way to protect yourself from such thievery? Don’t worry, I’ve got exactly the thing you are looking for. In this write-up, I will talk about how residential proxies can help prevent Ad fraud. You have to read this carefully so you can avoid getting scammed.

The Anatomy of Ad Fraud

If we talk about the most common form of advertising which is online, there are a lot of frauds being done here. People are coming up with new ways like creating impostor websites, fake ads, and bots for clicking on ads.

These are things that are creating problems for businesses as they are missing out on potential customers and buyers. If we talk in numbers, in 2021 digital advertising was valued at $705 billion, but losses from ad fraud were around $42-65 billion.

This is not a small amount, right? Residential proxies are a great way to fight against these issues, but you have to understand first the manner in which these frauds work. Only then you will be able to maintain your reputation, gain customers, and most importantly save money.

What Are Residential Proxies?

Residential Proxies

As I said earlier, residential proxies are the best for fighting ad fraud, but what are they? Residential proxies work in disguise and track your internet activity. In simple terms, it hides your real IP address and makes it look like a regular household. 

But in what way does it benefit you? It makes your online activity look genuine and trustworthy. On the other hand, if you are using data proxies, they get easily blocked by websites. But residential merges well with the everyday traffic.

It makes it easier to detect any unauthorized activity like ad fraud, and businesses can use these proxies to keep tabs on their advertisement performance and stop the action before it happens.

How Residential Proxies Combat Ad Fraud

Now on to the main questions, how do residential proxies help you fight against AD fraud? Allow me to make it a bit dramatic, think of this proxy as an undercover agent and that what they would do is catch every unsavory person from the network.

They enter undetected and as soon as they see anything unusual they work immediately to catch the criminals which are fraudsters. Companies can easily spot fake clicks and bots.

I’m breaking down its features below: 

Detecting Fake Clicks

Since the residential IP addresses are genuine, it differentiates them from the fraudulent ones. It’s like finding a black sheep. They can easily compare traffic, which helps them identify suspicious patterns and make sure only the real users are counted.

Ad Verification

These proxies can easily do ad verifications, this ensures that ads are reaching the right audience with the correct IP address. If you are looking to catch a fraud then consider this crucial because ads can reach the wrong audience or might not reach anyone even after paying a hefty sum.

Preventing Fraud

Obviously, this is the whole point residential proxies don’t only detect fraud, they prevent it from taking any steps and drain advertising budgets. Since it gets easier to monitor real-time interaction with the advertisement proxies, block fraudulent traffic on the spot.

It doesn’t allow it to move further in the network. Another thing that you might now know is such scams can be done from any type of device. Look at the graph below.

AD Fraud % by Device Type

Beyond Ad Fraud Protection

Apart from protecting you against such scams, residential proxies have some additional benefits. For example, it hides the user’s real IP addresses, maintaining the confidentiality of business activities. Market research also gets improved as you can easily bypass geographical restrictions. This way, companies can see how their ads perform on a global level. 

DID YOU KNOW?
In 2016 Uber got scammed by its AD agencies and the amount was valued at over $100 million. 

Wrapping Up

Oh, hey there! You made it to the end, seems like you were concerned about the ad frauds, and you should be. Ad frauds not only drain you financially, they also damage your overall reputation. 

But you don’t have to worry anymore, right? Because you know what is the best way to prevent them, and it is by using residential proxies. Make sure that you take full advantage of it and protect yourself from any threat.




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