Ad Fraud Hotspots: Why Singapore Leads the Global Rise in Invalid Traffic

By Angela Gray

November 07, 2025

Global digital advertising continues to boom, but a new report from Pixalate paints a troubling picture beneath the surface. Their Q3 2025 Global Invalid Traffic (IVT) & Ad Fraud Benchmarks reveal that over 21% of web traffic, 33% of mobile app traffic, and nearly 19% of Connected TV (CTV) impressions are invalid – essentially, wasted ad spend. While CTV consistently demonstrates a lower rate compared to other platforms, certain regions are emerging as hotspots for fraudulent activity. Singapore, in particular, is facing a significant challenge, recording alarmingly high IVT rates on both CTV (43%) and mobile app (41%) platforms.

These figures, while concerning across the board, highlight a critical geographic disparity. Japan, conversely, boasts some of the lowest IVT rates globally, suggesting a stark contrast in mitigation effectiveness. But what’s driving this regional divergence, and what does it mean for advertisers and publishers?

A Global Picture of Invalid Traffic

The Pixalate report analyzed over 106 billion programmatic ad impressions worldwide, providing a comprehensive overview of IVT trends. While the global averages are sobering, breaking down the data by platform reveals key insights. Mobile apps continue to be the most vulnerable, with over a third of impressions deemed invalid. Web traffic isn't far behind, at 21%, while CTV, though relatively safer, is still susceptible to fraud.

“The consistent rise of IVT across platforms is a major concern for the industry,” explains a data scientist at Pixalate. “It erodes trust in digital advertising and undermines the value of programmatic channels.”

Singapore: An Emerging Fraud Epicenter

Singapore’s unusually high IVT rates are prompting closer scrutiny. The data suggests a confluence of factors is at play. According to industry experts, the region’s rapid adoption of new technologies, particularly in mobile and CTV, is outpacing the implementation of robust fraud prevention measures.

“Singapore is a tech-forward nation, and that’s fantastic,” says an ad tech consultant specializing in the APAC region. “However, the speed of innovation has created vulnerabilities. Fraudsters are quick to exploit new platforms and technologies before adequate security protocols are in place.”

Furthermore, the presence of sophisticated bot networks and organized cybercrime groups in the region is exacerbating the problem. Reports indicate that these groups are employing increasingly advanced techniques to generate fraudulent traffic and evade detection.

“We’re seeing a shift from simple click fraud to more complex schemes involving fake users, spoofed devices, and manipulated data,” explains a cybersecurity analyst based in Singapore. “These schemes are designed to mimic legitimate user behavior, making them difficult to identify.”

Japan’s Success Story: A Model for Fraud Prevention

In stark contrast to Singapore, Japan has emerged as a leader in ad fraud prevention. The country’s consistently low IVT rates are attributed to a combination of factors, including strict regulatory measures, a robust cybersecurity infrastructure, and a proactive approach to fraud detection.

“Japan has a long-standing commitment to cybersecurity and data protection,” explains a marketing executive with a Japanese advertising agency. “The government has implemented strict regulations to combat online fraud, and businesses are actively investing in security technologies.”

Furthermore, Japan’s strong emphasis on data quality and transparency is helping to minimize the risk of fraudulent activity. Businesses are incentivized to maintain accurate data and comply with industry standards, creating a more secure advertising ecosystem.

The Financial Impact of Invalid Traffic

The financial consequences of ad fraud are substantial. Industry estimates suggest that billions of dollars are lost annually due to fraudulent impressions, wasted ad spend, and reduced ROI. For advertisers, this translates into lower conversion rates, diminished brand reputation, and a diminished return on investment.

“Ad fraud is not just a technical problem; it’s a business problem,” says a finance executive at a global advertising agency. “It impacts our bottom line and erodes trust in the digital advertising ecosystem.”

For publishers, ad fraud can damage their reputation and lead to decreased revenue. Advertisers are less likely to invest in platforms that are susceptible to fraud, leading to a decline in ad inventory and revenue opportunities.

Emerging Solutions: Blockchain and Machine Learning

Combating ad fraud requires a multi-faceted approach that combines technological innovation, industry collaboration, and regulatory oversight. Several emerging technologies are showing promise in the fight against fraud, including blockchain and machine learning.

Blockchain technology can enhance transparency and security in digital advertising by creating an immutable ledger of ad impressions. This can help to prevent fraudulent activities and ensure that impressions are genuine.

Machine learning algorithms are increasingly being used to detect and prevent ad fraud. These algorithms can identify patterns and anomalies associated with IVT, providing more accurate and efficient fraud detection.

“We’re seeing a lot of innovation in the fraud detection space,” says a data scientist at an ad tech firm. “Machine learning is becoming increasingly sophisticated, and we’re able to identify and block fraudulent traffic with greater accuracy.”

However, it’s important to note that these technologies are not silver bullets. Fraudsters are constantly evolving their tactics, and it’s crucial to stay one step ahead. Continuous monitoring, data analysis, and industry collaboration are essential to effectively combat ad fraud and protect the integrity of the digital advertising ecosystem.

Ultimately, tackling the rising tide of ad fraud will require a concerted effort from all stakeholders. By prioritizing transparency, investing in innovative technologies, and fostering greater collaboration, the industry can create a more secure and sustainable digital advertising ecosystem.