Finance sector most exposed to app install fraud risk

Global mobile app fraud exposure has reached $5.4bn – the estimated loss if there was no fraud protection – with the finance sector making up almost half of that amount. 

That’s according to AppFlyer’s latest State of Mobile App Fraud report, which analysed 22 billion app installations across 24,000 applications with at least 2,000 monthly installs between January 2022 and February 2023.

Why it matters

AppFlyer observes that reduced budgets are diverting attention and resources away from fraud protection and towards lower-cost ad networks, which heightens the potential for fraudulent activity. Media buyers need to be aware of the risks involved. 

Takeaways

• In H2 2022 globally, iOS fraud climbed 40% while Android jumped 46%.
• The highest fraud incidence was detected in the European Union, reaching $2bn. In the EU, on Android, bots made up 76% of fraud, click flooding was 12%, fake publisher activity was 11% and install hijacking was 1%. Similarly on iOS, bots made up 78%, click flooding was 14% and fake publisher activity was 8%. 
• Over 50% of total fraud exposure globally impacts the finance category, at $2.6bn. Generally, non-gaming apps experienced 6x higher app install fraud than gaming apps. 
• Mobile campaigns in the UK were hit with a soaring 22% install fraud rate detected on average for both Android and iOS; by comparison, the US was hit with an average 8% install fraud rate. 

Sourced from AppFlyer