New data shows why traditional fraud controls are collapsing as AI reshapes digital advertising at scale.
As enterprises accelerate AI adoption across marketing, the Ad Fraud in 2025: Beyond the Linear Lens report reveals a stark reality: the same intelligence powering automation and optimization is also enabling fraud at unprecedented scale and sophistication. Fraud is no longer confined to isolated bots or suspicious clicks—it now behaves like a coordinated, AI-driven system that blends seamlessly into genuine user activity
The data is eye-opening. mFilterIt’s 2025 validation analysis shows that fraud sophistication has tripled in just two years, driven largely by AI-based behavioral mimicry. Between 30–45% of programmatic traffic labeled “valid” failed deeper validation checks, while even closed platforms were not immune—9–18% of activity on walled gardens showed signs of invalid or incentivized behavior. In high-cost environments, these small percentages translate into disproportionately high financial losses.
AI-driven manipulation is also distorting performance metrics that enterprises rely on for decision-making. The report found that 45–55% of app installs can show anomalies such as abnormal click-to-install times or device duplication, despite appearing “clean” in attribution dashboards. Similarly, up to 35% of affiliate traffic showed signs of bot involvement or misattributed organic actions, inflating conversions while weakening downstream business outcomes.
Even exposure controls are breaking down. 15–18% of display and video impressions breached assigned frequency caps, leading to overexposure, ad fatigue, and wasted budgets—often without detection due to fragmented identity systems.
The report’s message to enterprise leaders is clear: AI has transformed fraud from a tactical issue into a strategic risk. In a non-linear, AI-powered ecosystem, siloed verification no longer works. Enterprises must shift toward full-funnel, behavior-led validation to protect both marketing performance and long-term digital trust.