State University of New York Institute of Technology
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Digital Ad Fraud Is Rampant. Here's Why So Little Has Been Done About It

     The problem with removing digital ad fraud is not being dealt with on a wide spread basis is the removal of fraudulent ad's would make the cost of advertising would skyrocket.   This makes for little incentive to fight the rampant fraud problem.  Tom Phillps, CEO of Dstillery states the culture around the fraud here "We're out there trying to do it the right way and by comparison we're facing a prisoner's dilemma against competitors who show great results from fraudulent traffic," he said. "Anyone along the chain who is playing it straight gets screwed."

      The major problem with trying to get rid of fraudulent advertisements is the lack of consequences for perpetrators.  Harvard professor Ben Edelman suggested making refunds for fraud an obligation.  With this said even Professor Edelman said "I don't know if they have the wherewithal, the backbone, the legal enforcement, the lawyers frankly, to go and hound each other until they're all honoring their respective promises to each other,"  which put it out there plainly that he is not sure it could work.

http://adage.com/article/digital/online-ad-fraud/292285/


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