Mumbai: DoubleVerify (DV) has raised the alarm over a sharp rise in fraudulent mobile apps, powered increasingly by AI, that are infiltrating both iOS and Android ecosystems. According to findings from the DV Fraud Lab, these low-quality apps exist largely to serve ads or carry out malicious activity — from hijacking devices to generating fake impressions — signaling a new wave of AI-fueled ad fraud.
DV revealed that so far in 2025, fraudulent iOS app classifications are nearly three times higher than the five-year average, while Android fraud has surged nearly six-fold. This explosive growth poses a critical challenge for advertisers and marketplaces alike.
“There’s a noticeable increase in apps slipping through major marketplace review processes that were previously unlikely to be approved,” said Yuval Rubin, Fraud Detection Group Lead at DV. “This could point to a combination of more sophisticated fraud tactics.”
The use of generative AI is emerging as a key driver of the surge. Fraudsters are now leveraging AI to build realistic-looking apps, generate fake reviews, and simulate user behavior, making detection increasingly difficult. In one case highlighted by DV, a malicious gaming app generated more than 200,000 daily impressions despite minimal graphics and reviews, evading app store safeguards by using AI-generated text and a templated developer site hosted on tempisite.com — a service also linked to phishing schemes.
The DV Fraud Lab has tracked similar systemic threats before, including GenAI-fueled fake reviews in 2024 and the “SmokeScreen” malware scheme targeting CTV devices in 2023. The latest spike, however, underscores how rapidly AI has lowered the barriers for fraudsters, expanding malicious activity across mobile, web, CTV, audio, gaming, and retail media.
Marketplace Challenges and Industry Risks
The surge also raises questions about the effectiveness of app store gatekeeping. Apple itself reported rejecting 1.93 million app submissions in 2025 — a 10% increase from the year before — yet fraudulent apps continue to slip through.
Adding to advertiser concerns, DV has warned that direct buys and Private Marketplace (PMP) deals are no longer immune to fraud. Fraudulent traffic is increasingly being resold even through so-called “direct” channels, eroding trust in traditional buying safeguards.
DV emphasized that AI-powered fraud is no longer confined to open exchanges; it is now infiltrating every buying method, including direct and PMP deals. The company urged advertisers to depend on independent measurement and verification rather than assumptions of transparency.
What’s Next?
Experts warn that if left unchecked, the trend could result in wasted ad spend, tighter app store policies, and greater scrutiny for legitimate developers. For marketplaces, this is a pivotal moment to invest in advanced fraud detection and AI-driven review mechanisms.
Each year, the DV Fraud Lab employs a blend of GenAI tools and expert analysis to uncover thousands of fraudulent apps, sites, and schemes. Its latest findings reinforce one message for the ad industry: in the GenAI era, no channel is a safe haven — and constant vigilance is the only defense.
