Surveillance Ads: The Gateway to Financial Fraud

Feb 9th, 2024 Written By Rebecca Beardslee, Edited by ChatGPT & Humanize

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Surveillance Ads: The Gateway to Financial Fraud

As with anything in the modern setting, there is a wealth of opportunities to be found online, but equally, there are new and often unseen threats. Another worrying trend that has been observed in recent years is the growth in surveillance advertising. At first glance, it would not be wrong to consider this practice a generally effective and by no means detrimental strategy. However, if one scratches beyond the surface, one will realize that it has an ugly side that cannot be overlooked. By every time we browse social media, purchase something online, or even a simple web surfing, we are watched not by people but by algorithms that are programmed to learn as much about us as possible. These algorithms collect information, which then helps to display advertisements that are very specific. However, when this data is used inappropriately, it becomes possible for fraud within the financial aspect to occur.

In its essence, surveillance advertising is all about data—capturing as much of it as is possible. Each time you select a link, enter a search term, or register your approval with an icon, that activity is monitored and logged. The ultimate aim here is to create a persona encompassing your passions, activities, and potentially, your weaknesses. Markets cost a premium to place ads where viewers are most likely to respond and interact with them. At first glance, this might seem like a win-win: We get to see advertisements that are appealing to our interests while businesses receive improved efficiency of marketing spending.

With many of the same tools that allow for ad targeting, the same can be used by malicious actors. This information can be used by criminals to develop new scamming strategies that make it seem like the targeted person is getting threatened by a dangerous person, hence new risky scams.

How Surveillance Ads Increase the Chances of Financial Scams

For instance, you are seeking information on credit cards on the internet. Having spent some time looking at a few sites and reading through some of the reviews, you begin to notice advertisements for different credit card offers. This is not a coincidence, this is surveillance advertising at play here, ladies and gents. What if, having clicked on one of such advertisements, they are taken to a specifically crafted phishing page that resembles a genuine site?

This is where it becomes a bit more complicated. Through surveillance advertising, fraudsters are able to gather adequate information, which they can then use to develop highly detailed scams. They know what you care about, what you may be thinking about buying and how to capture your attention. With this information, they are able to plan and lure people into phishing scams, fake stock trading platforms or fake online shops that appear to be developed especially for you. 

"How Ads Became Your Creepy Online Stalker (And Why It Could Cost You)"

For instance, if a scammer understands that you invest in crypto, they could create a fake trading platform. The site could look quite professional, with nice graphics, people stating how much money they made with this site, and the sky-high potential returns. Since the ad is particularly for you, it comes along at a time when you cannot resist it and are at your weakest. Just one mouse click, and you may be providing your identity data or credit card numbers to a scammer. 

The Real-World Effect of Big Data Fraud

One might be tempted to consider it as an internet problem, a concern prevalent in cyberspace only. But the price is quite tangible and weighs on the patient. The major effects of financial fraud are the loss of money that causes you to be broke, low credit score which may lead to a bad credit status and stress and anxiety caused by fraud. Such forms of fraud leave victims feeling violated not just because of the loss of their money but because the fraud touches them in such a personal way. This particular scammer understood this tactic and aimed right for the sweet spot.

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Sources:

• Financial Fraud, is discussed in Cory Doctorow article, "The surveillance advertising to financial fraud pipeline," September 29, 2023.