CTV Ad Fraud: What It Is, How It Drains Budgets, and How to Stop It

CTV ad fraud is the manipulation of connected-TV ad delivery and measurement to generate revenue from fake or misrepresented impressions. Because CTV CPMs are high and supply paths are complex, fraudsters spoof devices and apps, hijack server-side ad insertion (SSAI) sessions, recycle impressions, and mask sources to siphon spend. Industry bodies have been tightening guardrails, but IVT on CTV is still a real risk for marketers scaling video. IAB Tech Lab’s standards like app-ads.txt, sellers.json, and the SupplyChain Object help expose who is actually selling inventory on CTV apps, yet enforcement and adoption vary by partner and platform.

According to Spider AF's 2025 Ad Fraud White Paper, average ad fraud across web performance media reached 5.1% in 2024, with some networks topping 46.9% and up to 51.8% of a single company’s budget impacted before mitigation. The study also shows conversion rates from valid clicks are roughly 2x higher than from invalid traffic, underscoring how fraud distorts ROI and optimization.

What makes CTV distinct is SSAI’s role. Independent research has found IVT rates more than double when SSAI is in the programmatic supply chain, and SSAI is used widely across CTV app stores. That does not mean SSAI equals fraud, but it does raise risk if buyers lack verification and path transparency.

The main CTV fraud types you should know

1) SSAI session hijacking and impression laundering

Fraud schemes can join real viewing sessions and insert unauthorized ad calls, or fake sessions entirely. DoubleVerify documented “SneakyTerra,” an SSAI scheme that spoofed millions of devices a day at its peak.

2) App, channel, and device spoofing

Bots or misconfigured servers claim to be premium CTV apps or devices, inflating supply and diverting spend away from real publishers. IAB Tech Lab’s app-ads.txt and sellers.json mitigate this by listing authorized sellers and surfacing the chain of custody.

3) Sophisticated invalid traffic (SIVT) on CTV

Measurement firms continue to earn third-party accreditation for filtering SIVT in CTV, which helps buyers trust verification signals. In April 2024, IAS received MRC accreditation for CTV SIVT filtration.

4) Botnets and large-scale operations

From earlier CTV-focused botnets like ICEBUCKET to other cross-environment operations, takedowns show adversaries adapt quickly to new signals. Use them as reminders to monitor continuously rather than proof the problem is “solved.”

Data check: how big is the problem?

• SSAI risk multiplier: Pixalate’s Q2 2024 research reports IVT rates are 110% higher when SSAI is used, and that SSAI is prevalent across major CTV app ecosystems.
• Standards tightening: The MRC issued 2024 interim IVT updates that push for more granular (including property-level) IVT detection and reporting, aimed at dynamic environments like CTV.
• Programmatic transparency: The ANA’s Programmatic Transparency Benchmark, expanded to include CTV, continues to show opportunities to recover working media through cleaner paths and better log-level visibility.
• Cross-channel cost of fraud: Average invalid-traffic share across performance media hits budgets and depresses conversion quality. According to Spider AF's 2025 Ad Fraud White Paper, valid-click CVR is roughly double invalid-click CVR, and global digital ad fraud losses were modeled in the tens of billions.

How to reduce CTV fraud without hurting scale

1) Buy against verified supply paths

• Require app-ads.txt on CTV apps and validate sellers.json and the SupplyChain Object on every impression where supported. Avoid inventory without clear authorization chains.
• Prefer private deals with direct sellers where possible and demand log-level transparency that allows reconciliation.

2) Demand MRC-aligned verification and granular IVT reporting

• Ask partners for MRC audit status and support for the 2024 interim IVT updates, including property-level reporting and SIVT controls specialized for CTV.

3) Treat SSAI as “trust but verify”

• Maintain SSAI allowlists, scrutinize SSAI IPs/domains, and use verification that can distinguish client-side from server-side beacons to prevent session hijacks. Evidence from past SSAI-based schemes shows the value of these controls.

4) Close the loop on post-view actions

• Many CTV ads drive QR scans, branded search, or site visits. Cleansing down-funnel traffic and leads prevents bots and click farms from polluting your optimization signals and CRM.
• Spider AF PPC Protection can automatically block invalid clicks, placements, and audiences on major ad networks so your retargeting and branded search don’t learn from junk signals. It also helps exclude MFA and low-quality placements that often correlate with IVT.
• Spider AF Fake Lead Protection flags fake conversions in real time via CRM integration, preserving training data for MMM and incrementality studies. According to Spider AF's 2025 Ad Fraud White Paper, filtering invalid activity improves conversion quality and ROI across inbound channels.
• Spider AF SiteScan continuously monitors client-side scripts and tag changes on your landing pages and microsites, aligned with PCI DSS 4.0.1 client-side mandates, reducing risks from tag abuse after a CTV campaign launches.

FAQs

Is CTV more “fraud-prone” than display?

CTV is not inherently more fraudulent, but high CPMs and SSAI complexity create incentives. With strong supply-path controls, MRC-aligned verification, and down-funnel cleansing, CTV can be as safe as other channels.

Do private marketplaces eliminate fraud?

They reduce risk by narrowing counterparties but do not remove it. Still apply app-ads.txt checks, sellers.json/SCO validation, and SIVT filtering.

What KPIs signal CTV fraud early?

Unusual spikes in completion with flat reach, identical device IDs across apps, impression bursts from a limited SSAI IP range, and post-exposure traffic that fails basic quality checks (high bounce, no scroll, zero form completion).

How do I protect search and social after CTV?

Use Spider AF PPC Protection to block invalid audiences and IPs, and Fake Lead Protection to remove fake sign-ups that poison bidding models.

A practical checklist for your next CTV buy

• Contractual: require app-ads.txt, sellers.json, SCO, LLD access.
• Tech: enable MRC-aligned CTV SIVT verification with property-level IVT reporting.
• SSAI: keep allowlists, monitor SSAI endpoints, and test for session hijacks.
• Down-funnel: deploy Spider AF PPC Protection, Fake Lead Protection, and SiteScan to cleanse post-view traffic and protect forms.

Conclusion: Clean CTV starts with clean data

CTV scales reach, but fraud follows money. Standards are improving and verification is maturing, yet the critical leaks often appear after the view: low-quality site visits, junk leads, and tainted signals. Spider AF helps you close those gaps. Start by protecting paid media and inbound traffic with PPC Protection, remove fraudulent conversions with Fake Lead Protection, and monitor your campaign pages with SiteScan.

• Try Spider AF PPC Protection free → https://spideraf.com/ppc-protection
• Try Fake Lead Protection free → https://spideraf.com/fake-lead-protection
• Scan your site now with SiteScan → https://spideraf.com/sitescan

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