An Abney Associates Fraud Awareness Program on Why Advertising Fraud is so high on the Internet

...and how the industry is trying to fix it.

When news that a sample of Mercedes-Benz's adverts was more widely viewed by bots than humans breaks in the same week that an audit company reveals four in five British advertisers have no idea how many of their advert impressions are fraudulent, you know an industry is in some sort of trouble.

"The market has been has been relentlessly pursuing success and performance and in so doing has lost sight of where adverts actually appear," said Duncan Trigg, chief executive of Project Sunblock, an auditing firm for advertisers and the authors of the aforementioned report.

"Brand safety" has long been important for Project Sunblock's clients, with regular investigations run to check whether adverts are displayed alongside undesirable editorial content such as pornographic or racist material. But since the rise of programmatic advertising in 2009, in which space is bid for based on which demographics a company wishes to target, bots have become an increasing concern.

The Interactive Advertising Bureau (IAB) surveyed enterprise marketers last November, and found that 85% were using programmatic advertising. Of those who did half were trying to buy adverts more efficiently, with slightly more trying to target more effectively, and only 16% motivated by cost-cutting. Over the next two years 91% of advertisers are expected to take up programmatic advertising, despite anxieties about the practice.

Ascertaining who is actually viewing the campaigns is a growing trend for the auditors. Adverts appearing below the fold of a web page are much less likely to be seen than those visible when the page opens. But more problematic than that is the rise of botnets in directing fraudulent traffic, with the IAB claiming that as much as a third of online traffic for adverts is robotic rather than human.

"Botnets are already surprisingly sophisticated and will only become more potent in time," said Andrew Goode, chief operating officer of Project Sunblock. "There are many pieces of malware used to infect PCs which are used to create fake traffic and then sold on to publishers through ad exchanges, and some of the bots are almost indestructible." Continue reading…

An Abney Associates Fraud Awareness Program: Fraud soars as Britons fail to protect online identity

The number of confirmed identity fraud cases increased by 37 per cent between 2012 and 2013, new data reveals.

Analysis by credit-checking specialist Experian found that almost 13,000 cases of fraud were confirmed in 2013, with the biggest increases reported in account takeover fraud, loan fraud and mobile phone account-related fraud.

Experian said these increases are linked to the online habits of Britons.

Separate research into consumer behaviour online suggests that one person in 10 never changes their passwords and one in 20 uses the same passwords for all of their online accounts.

With an average of 19 online accounts each, this could make it easier for fraudsters to get a hold of valuable information.

Pete Turner, managing director of Experian Consumer Services, said: "Although we have witnessed an increase in those seeking support having become victims of fraud, the good news is that improved fraud detection services are catching more and more fraudulent credit applications before many suffer financial loss."

Experian recommends that consumers always shred financial documentation after use, use strong passwords when banking online and avoid choosing online passcodes out of the dictionary.

They also recommend ensuring that sites are encrypted - indicated by a padlock symbol - before entering payment details, locking your smartphone's home page to protect any apps or images with important information, and keeping important details like birthdays and your mother's maiden name off social media.

Turner said: "Fraud is not just about financial loss. If your identity is compromised it takes on average 246 days to discover you have become a victim of fraud. That's a long time for a criminal to have and use your identity for their gain, and potentially harm your reputation and credit rating."

An Abney Associates Fraud Awareness Program: I've been a victim of phishing, how can I stop this from happening again?

One reader was victim to a scam email. She asks our consumer expert how she can be better informed about such emails in future

Ideally this type of email should be detected and diverted into a “spam” folder, but that doesn't always happen. You may not have such a filter, in which case have one installed. Even with one it is worth being alert to the fact that such emails can still get through to your main folder. It is best to delete them if they do, and also from any spam or trash folders.

A spokesman for getsafeonline.org said your email service might also have an option to block the sender either straight from the in-box or in the junk folder. You may want to forward such emails to the bank or organisation referred to if relevant before doing this.

Most spam emails actually don’t ring true from the start. This is often because the person who receives the email doesn’t have an account with the bank or organisation it pretends to be from.

The senders are relying on the fact that in this exercise something will strike a chord with someone, even if it is only 1pc of those receiving them – that a few of those people will actually take the bait. However, with so much personal data doing the rounds, there may soon be more emails that seem authentic.

Don’t get drawn into giving personal information and don’t click on any attachments or links. Not only could this lead to fraud, it could also affect your computer.

The web is full of advice about these bugbears of modern life, but people still get caught out and readers still write in about their bad experiences.

If an email purports to be from a bank or a government body, check out the real website for information on phishing scams. For example, HMRC’s website, hmrc.gov.uk, has some helpful advice. Follow “security advice” from the front page.

Also see actionfraud.police.uk/fraud-az-phishing (or call 0300 123 2040) and getsafeonline.org. Or try the Citizens Advice consumer helpline on 08454 040506 (citizensadvice.org.uk).

Useful information relating to such scams can also be found on millersmiles.co.uk.

How to contact our consumer champion

Because of the volume of mail received, it is not possible to respond to every letter and correspondence cannot be entered into. Please do not send original documents or stamped and addressed envelopes. Responsibility, legal or otherwise, for answers given cannot be accepted. Cases currently with an ombudsman, going through a court of law or sent to other columns will not be considered.

In addition, Jessica cannot take up issues when the writer is a third party, other than in exceptional circumstances and cannot respond to emails. A full postal address, a signature and daytime telephone number are needed. Please address letters to: Jessica, Your Money, The Daily Telegraph, 111 Buckingham Palace Road, London SW1W 0DT.

If you have a simple money advice question rather than a consumer complaint, email our Ask an Expert panel at moneyexpert@telegraph.co.uk.

An Abney Associates Fraud Awareness Program: Beware online banking scams

The New Zealand Bankers’ Association today encouraged people to be wary of online banking scams as part of Fraud Awareness Week 2014.

"Online scammers are constantly thinking up new ways to trick people into handing over personal information," said New Zealand Bankers’ Association chief executive Kirk Hope.

"Never give anyone your PIN or internet banking username or password. Your bank will never ask you for this confidential information. Anyone who asks for this, even if they say they’re from your bank or a retailer you know, will in all likelihood be trying to scam you.

"Once scammers have that information, such as your account number, log-in details, or password, they can access your identity and your money."

"If it doesn’t seem right, take care and double check it first before handing over personal information."

"Everyone has a role to play in fighting fraud by being vigilant and reporting scams.

"Reporting scams raises public awareness and helps stop scammers in their tracks. Contact your bank as soon as possible if you think you’ve been taken in by a scam," Hope said.

Scams can also be reported here.

Online scams are the focus of this year’s Fraud Awareness Week campaign, which is co-ordinated by the Ministry of Business, Innovation and Employment. More information about Fraud Awareness Week is available here.

Safety tips to help protect yourself against online banking and shopping scams include:

o   Logon to internet banking by typing in your bank’s full web address. Do not use links that appear to take you to your bank’s website.

o   Check you have a secure connection, which is shown by a padlock symbol somewhere on the page, and that the website address starts with ‘https://’. The ‘s’ stands for ‘secure’.

o   Avoid public computers and public Wi-Fi for internet banking, e.g. internet cafes, libraries or hotels.

o   Protect your identity information and only provide it to trusted people and organisations. This includes your date of birth, address, driver’s licence number and passport details.

o   Shop with trusted retailers. Before you provide personal information make sure they will protect that information.

o   Keep your anti-virus and firewall software up to date.

o   If you suspect you’ve been taken in by a scam, contact your bank immediately.

If you use your mobile phone for banking:

o  Only download apps from trusted sources

o  Keep device operating systems up to date, and update apps when prompted

o  Use your phone’s password lock feature

o  Shield your passwords from people around you

o  Change your passwords periodically, and make sure they are not easily guessable

o  If available, use anti-virus software

o  Contact your bank immediately if you lose your phone.

An Abney Associates Fraud Awareness Program on Nine tips for councils on tackling fraud

As fraud gets harder to detect, what can councils do to protect themselves?

1. Fraud is getting harder to detect – so be vigilant

Technology means fraud has become more sophisticated and harder to detect. Awareness and vigilance must be key to protecting ourselves and the economy from these organised criminals.

– Lee Ormandy is intelligence and legal manager at Surrey county council

2. Beware of corruption growing in local government

We think that the corruption risk for local government in the England has increased, and that – as a result – corruption in UK local government is likely to increase. We may not see the consequences for a decade. Many changes, such as those to the audit regime and ethical standards, are recent, and the precise consequences are not possible to predict. However, a lesson Transparency International has learnt across the world is that it is better to take notice of emerging risks and to act early, because once corruption takes root it can be very hard to eradicate. Relatively few cases of fraud and corruption can have high impact, and this affects trust in local government and in politics more generally.

– Nick Maxwell works for Transparency International UK

3. Invest, invest, invest

We have a concern that local authorities will lose their fraud investigators due to the welfare reform, and when they do realise that they need investigators they will have to go out and re-recruit. Local government needs to make it a duty on each council to ensure that fraud is investigated and that there is zero tolerance to fraud. Share out the £16.6m given to the Department for Communities and Local Government. Investing in fraud protection will mean local government is up-to-date on any threats and gets rewarded for identifying and prosecuting fraud.

– Andrew Williams is a member of the Local Authority Investigation Officers Group

4. Make young people aware of the dangers of fraud online

An increasing worry is young people not appreciating the dangers of online fraud. People growing up treating the internet as a given before they're old enough to have a bank account are often less likely to realise that fraudsters are targeting them through pop-ups or other scams.

– Lee Ormandy is intelligence and legal manager at Surrey county council

5. Make sure the loss of the Audit Commission doesn't cause problems

The Audit Commission used to also play a role in offering protection to external auditors, which empowered them to pursue investigations without fear of being sued or losing future contracts. In the new arrangements, there is no supportive role for an auditor to look at corruption risks and there will be no duty for auditors to consider corruption.

– Maxwell

6. Learn from central government

What is the difference in this area between central and local government? Is one better than the other at tackling corruption? Is there good practice that could be shared?

– Rachael Tiffen is head of the counterfraud centre at the Chartered Institute of Public Finance and Accountancy

7. Learn from other councils

Stoke developed its own anti-fraud awareness campaignStop the Cheater (complete with an image of a cheetah) and concentrated on tenancy, benefits, and blue badge fraud. They increased referrals by 22% and recovered about 100 properties.

– Tiffen

8. Watch out for electoral fraud

There are lots of opportunities, from impersonating voters, postal votes, spending more than you declare etc. There is no proactive investigation or development of prevention-related strategies. The police have little interest in this. This is a classic area of fraud: because there are few detected cases it is thought that there is not a problem.

– Mark Button is director of the Centre for Counter Fraud Studies

9. Use data to plan services

Are councils communicating the benefits of using the personal data they hold to help plan the right fraud services? The care data, for example, being put on hold is due to lack of communication but it can only benefit everyone. We need to educate the public.

– Katrina Wakefield is head of public sector marketing at SAS UK

An Abney Associates Fraud Awareness Program: When Someone Steals Your Smartphone, Snap a Theftie

We all know selfies. And even dronies. But if you thought it could stop there, you are deeply naive. Bring on the “thefties.”

The name may come from a cheery social phenomenon, but thefties are a little more serious. They’re photos of electronics thieves taken with a tablet or smartphone’s front-facing camera. The goal is to give police something to go on if your device is stolen, or let you ID the culprit if it's someone you know.

The mobile security company Lookout is marketing thefties as part of its software suite for iOS and Android. The service currently sends you email alerts when it seems like someone is tampering with your device (by entering incorrect security codes, trying to uninstall software, etc.), and then GPS-tracks it so you can locate it from a browser. But now the thefties feature will also activate the device's front-facing camera and stealthily photography whoever is staring down at it. You get the photo in your inbox with a map pointing to the device's location. This is the theftie.

The FCC says that 1 in 3 U.S. robberies concerns a mobile device, and the problem has motivated legislators and the telecommunications industry to begin working on safeguards. But consumers are looking for immediate solutions. Though thefties aren't perfect, because they may not capture a clear image depending on how the thief is holding the phone, they're certainly a creative solution. But as David Richardson, Lookout's lead product manager for iOS, told CNET, "Not everyone here likes the name."

PC Speak: An Abney and Associates Internet and Technology Research Lab 5 Tips to Avoid Tax Fraud

Tomorrow, April 15, is tax deadline day. As tax filers get busy trying to beat the deadline for filing their returns and submitting their documentation, cybercriminals will also work in a rush online, plying their nefarious phishing scams and stealing personal information.

An official warning from the Internal Revenue Service (IRS) was released last week against hackers posing as the Taxpayer Advocate Service through bogus emails. The IRS also announced that it had begun over 200 new investigations this filing season, concentrated on tax refund fraud and identity theft.

A recent IRS press release states that in Fiscal Year (FY) 2013, the IRS started about 1,492 identity theft connected criminal investigations, 66% more than those initiated in FY 2012. Since January of this year, IRS Criminal Investigation has begun 295 new identity theft investigations, increasing the number of active cases to over 1,800.

As you do your final touches on your taxes, consider these steps to help you avoid from being defrauded on your taxes:

1. Know How Social Engineering can Harm You

With the increasing number of cyber attacks this tax season, make sure you proceed with caution when giving out confidential financial or banking information with others. If you get emails or phone calls from anyone presenting themselves as IRS personnel, do not give your bank account data or social security number unless you have confirmed their identity.

2. Avoid Opening Email Attachments as much as Possible

Are you aware that 1 out of 25 email attachments is considered malicious? Cybercriminals will often pose as IRS representatives, looking around for taxpayer with problems on their returns and their refunds through emails which they infect with attachments that have hidden programs to steal information or data.

Often, we cannot easily tell which files are genuine and free from malware. Use an antivirus and antimalware app to scrutinize those attachments and web downloads to minimize the risk of infecting you PC.

3. Avoid Using Public WiFi

Make it a habit to use only a private WiFi network when you file your tax return. Public WiFi hotspots may be often free and helpful, you could end up being targeted by many hackers on the prowl and compromising your personal data.

4. Use Strong Passwords to Protect Your Data

When you prepare your tax return for filing online, make sure you use a strong password to protect the file attachments.

After you finish filing your tax return, store the documents in a CD or flash drive and keep it in a safe place, then delete the documents from your hard drive. If you hire an accountant, inquire as to the how they ascertain that your data are safe and not accessible by any unauthorized persons.

5. Always Maintain Updated Antivirus and Two-way Firewall Protection

We cannot overemphasize the importance of updating your antivirus and firewall protection during tax season since cybercriminals constantly lurk in search of any access points into your system to steal personal information. Strive to set up a two-way firewall, which prevents unwelcome incoming traffic and arrests spyware and adware from sending your personal information out in the Internet. You need an antivirus application that has an efficient detection capacity and is able to identify attacks that arise between your updates.

If you believe you have become a victim to the tax return scammers and their fraudulent plans, inform the IRS as soon as you can.