Purchase Fraud
Purchase fraud in the context of mobile apps refers to deceptive practices aimed at exploiting in-app purchase mechanisms for financial gain. It encompasses various illicit activities such as utilizing stolen credit cards, exploiting loopholes in return policies, or fabricating fake purchase events.
Similar to fraudulent activities encountered in traditional brick-and-mortar stores and online retail platforms, fraudsters target the point in a user's journey where monetary transactions occur, both offline and in-app.
In mobile marketing, purchase fraud specifically pertains to fraudulent activities related to in-app purchases, which are integral events within the app ecosystem. Fraudsters engage in these practices to capitalize on the potential for substantial payouts from advertisers offering promotions based on lifetime value (LTV) incentives and in-app event rewards.
The types of purchase fraud can manifest in various forms, including the use of stolen credit cards, exploitation of vulnerabilities in return policies, and the creation of fabricated purchase events.