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 f
Another fraud detection firm, Pixalate, first exposed one element of the scheme in June. At the time, it estimated that the fraud being committed by a single mobile app could generate $75 million a year in stolen ad revenue. After publishing its findings, Pixalate received an email from an anonymous person connected to the scheme who said the amount that’s been stolen was closer to 10 times that amount. The person also said the operation was so effective because it works “with the biggest partners [in digital advertising] to ensure the ongoing flow of advertisers and money.”