DoubleVerify's Fraud Lab has unearthed a significant audio ad fraud scheme, dubbed the 'FM Scam', which spoofed over 500,000 devices in March 2024. It marks the first time smart audio speakers have been targeted by fraudsters.

The FM Scam is the second major global scheme to target audio spending, following the 'Beat Sting', the first major invalid traffic (IVT) scheme aimed at audio traffic. The combined financial impact of both schemes on unprotected advertisers exceeded $1 million in spend monthly at their peak.

The FM Scam fraudsters falsify audio traffic using dedicated servers and spoof a wide range of devices typically used for playing audio content. They auction their invalid traffic through supply-side platforms (SSPs), exchanges, and ad networks, generating up to 100 million ad requests monthly.

DoubleVerify's Fraud Lab, powered by a team of data scientists, mathematicians, and analysts, detected and mitigated the FM Scam attacks. The Fraud Lab also discovered connections between the FM Scam and a Connected TV (CTV) scheme first detected in 2019, as well as various malicious activities, including the spread of malware.

"Audio is rapidly becoming a lucrative target for fraudsters. The range of players and devices used to stream audio content sets this environment apart from other media types. Fraudsters tend to focus on emerging media, like audio, that attracts advertising investments but lacks comprehensive measurement standards," said Chief Innovation Officer at DoubleVerify, Jack Smith.

DoubleVerify is a digital media measurement and analytics platform.