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October 23, 2018 06:05 pm

Apps Installed On Millions Of Android Phones Tracked User Behavior To Execute A Multimillion Dollar Ad Fraud Scheme

A new investigation uncovers a sophisticated ad fraud scheme involving more than 125 Android apps and websites, some of which were targeted at kids. From a report: Last April, Steven Schoen received an email from someone named Natalie Andrea who said she worked for a company called We Purchase Apps. She wanted to buy his Android app, Emoji Switcher. But right away, something seemed off. "I did a little bit of digging because I was a little sketched out because I couldn't really find even that the company existed," Schoen told BuzzFeed News. The We Purchase Apps website listed a location in New York, but the address appeared to be a residence. "And their phone number was British. It was just all over the place," Schoen said. It was all a bit weird, but nothing indicated he was about to see his app end up in the hands of an organization responsible for potentially hundreds of millions of dollars in ad fraud, and which has funneled money to a cabal of shell companies and people scattered across Israel, Serbia, Germany, Bulgaria, Malta, and elsewhere. Schoen had a Skype call with Andrea and her colleague, who said his name was Zac Ezra, but whose full name is Tzachi Ezrati. They agreed on a price and to pay Schoen up front in bitcoin. "I would say it was more than I had expected," Schoen said of the price. That helped convince him to sell. A similar scenario played out for five other app developers who told BuzzFeed News they sold their apps to We Purchase Apps or directly to Ezrati. (Ezrati told BuzzFeed News he was only hired to buy apps and had no idea what happened to them after they were acquired.) The Google Play store pages for these apps were soon changed to list four different companies as their developers, with addresses in Bulgaria, Cyprus, and Russia, giving the appearance that the apps now had different owners. But an investigation by BuzzFeed News reveals that these seemingly separate apps and companies are today part of a massive, sophisticated digital advertising fraud scheme involving more than 125 Android apps and websites connected to a network of front and shell companies in Cyprus, Malta, British Virgin Islands, Croatia, Bulgaria, and elsewhere. More than a dozen of the affected apps are targeted at kids or teens, and a person involved in the scheme estimates it has stolen hundreds of millions of dollars from brands whose ads were shown to bots instead of actual humans. (A full list of the apps, the websites, and their associated companies connected to the scheme can be found in this spreadsheet.) One way the fraudsters find apps for their scheme is to acquire legitimate apps through We Purchase Apps and transfer them to shell companies. They then capture the behavior of the app's human users and program a vast network of bots to mimic it, according to analysis from Protected Media, a cybersecurity and fraud detection firm that analyzed the apps and websites at BuzzFeed News' request. This means a significant portion of the millions of Android phone owners who downloaded these apps were secretly tracked as they scrolled and clicked inside the application. By copying actual user behavior in the apps, the fraudsters were able to generate fake traffic that bypassed major fraud detection systems. Response from Google.

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