A proxy is a server or service that acts as an intermediary between a user and the internet. It allows users to route their internet traffic through different IP addresses, essentially masking their true identity and location online. In digital advertising, proxies are often associated with click fraud and IVT generation.
How proxies enable click fraud
Fraudsters frequently use proxy servers to generate fake clicks on ads. By routing traffic through multiple proxies, they can make it appear that clicks are coming from different locations and users. This helps them avoid detection while artificially inflating click numbers. Some proxy services even offer rotating IP addresses, making it even harder to identify suspicious patterns.
One example of how this can become problematic is as follows. You have users from across Europe clicking on your ads and this leads you to direct more marketing spend into Europe. But, all of those clicks are, in fact, from one person in the U.S.
Your investments in the European targeted ads fail to create further engagement/conversions, because those clicks were never from Europe. But, you didn’t know this, because the users making those clicks were using a proxy.
Beyond the bad investments and wasted money that click fraud, based on proxy traffic, can create, if your users use proxies to click on your ads and do, in fact, engage with them, you may not be able to gain any useful information from this.
Just as an example, if you have a series of users from the United States who convert to your service, based on your ads, then that is valuable information.
If those users used a proxy to make it seem like they were in Brazil, though, then you may be unable to accurately optimize your campaign, since the language and localization data given to you was completely false.
Types of proxies used in ad fraud
There are several common types of proxies used for fraudulent activities:
- Residential proxies - Using IP addresses from real internet service providers
- Datacenter proxies - Using IP addresses from cloud service providers
- Mobile proxies - Using IP addresses from mobile carriers
- Rotating proxies - Automatically switching between different IP addresses
Detecting proxy-based fraud
Advanced click fraud prevention systems can detect many proxy-based attacks. They analyze traffic patterns, IP addresses, and user behavior to identify suspicious proxy usage. Some key indicators include multiple clicks from the same proxy IP ranges or unnatural geographic patterns in click traffic.
Legitimate proxy uses
Not all proxy usage is fraudulent. Many businesses use proxies for legitimate purposes like testing ads in different locations, protecting privacy, or improving security. The key is distinguishing between normal proxy traffic and patterns that indicate fraud. This requires sophisticated detection systems that can analyze multiple data points.
Protecting against proxy abuse
To guard against proxy-based click fraud, advertisers should use click fraud prevention tools that specifically detect proxy abuse. These tools maintain databases of known proxy services and suspicious IP ranges. They can also identify behavioral patterns associated with fraudulent proxy usage. Regular monitoring of traffic sources and click patterns helps catch proxy-based fraud early.
