Using Fake Web Traffic to Trick Advertisers

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Oct. 7 (Bloomberg) -- WhiteOps co-founder Dan Kaminsky discusses how hackers use "botnets" to trick advertisers. He speaks with Cory Johnson on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

Real sites, high-profile sites have abilities to put your content on open exchanges.

It is a ecosystem where lots of people can get in and if they are able to drive traffic, they can make money.

The end result is real sites are getting infested by these bots.

Why when at the bots send traffic to sites that seem to be doing something?

There was a media company that seems to be indexing sites.

Google shuffled their algorithms.

It took a big hit.

Themselves a way to move traffic.

At the end of the day, millions and none of them are real.

-- there is always a way to move traffic.

The hard part is that advertisers, the entire ecosystem wants clicks.

Everybody from the publishers to the exchanges.

They do not care if it is leading to sales.

But once the numbers are up they have to stay up.

That is the problem with fraud.

You might find out and down the line, none of it was legitimate.

The market expects you to have the number.

If you are an advertiser and you are getting a client and people to click on an ad, if you find out they are fake it is in your own interest to not let anybody know because you have to keep the numbers high.

You go to your customers and tell them everything was fraught.

They will want their money back.

They will ask, are you no longer a popular site?

What you are in, you are hooked.

This has been going on for years.

We have the situation where even people who want to go ahead and get rid of the fraud are stuck with them.

That is what we are fixing.

How big a problem is it?

It is huge.

Give me a sense.

We were looking at equally distributed fraud.

The cost of doing business, 10%- 50% is fraudulent, what ever.

When we look at the data, some places are very clean.

You have situations where there are personal relationships between publishers and advertisers.

You end up seeing a where you have -- my yahoo!

That focuses on brand advertising.

Situations like that very low fraud rates.

In other situations i'm a high numbers.

We are talking 70%, 80% fraud.

That was dan kaminsky with

This text has been automatically generated. It may not be 100% accurate.

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