Purchase fraud

Purchase fraud is a type of in-app mobile fraud describing which includes using stolen credit cards, taking advantage of return policy loopholes, or even generating fake purchase events.

What is purchase fraud?

Similar to brick and mortar stores and online shops, there are actors looking to take advantage of the time in a user journey where money changes hands – offline, online, and in-app.

In mobile marketing, purchase fraud refers to in-app purchases, a type of in-app event.

Fraudsters target this part of the funnel in order to cash in on lucrative payouts from advertisers laying out LTV-based promotions and in-app event rewards. 

Types of purchase fraud

Purchase fraud can take all shapes and sizes, but the most common types are:

  • Using stolen credit cards
  • Taking advantage of return policy loopholes
  • Generating a fake purchase events
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