Exposing the Hidden Cost of Ad Fraud
December19, the Conscious Advertising Network and IAB
Ad fraud is both an industry problem and a societal one.
Every year, billions of pounds in global ad spend disappear into the pockets of bad actors. At best, brands waste their budgets. At worst, they unknowingly fund organised crime, misinformation networks, or harmful and illegal activity.
And the cost goes beyond the financial. Wasted impressions mean wasted energy, which means wasted carbon. Fraud in the digital advertising supply chain inflates emissions at precisely the moment when our industry should be doing everything possible to reduce its environmental footprint.
At the Conscious Advertising Network (CAN), the Anti Ad-Fraud Guide calls for accountability across all trading relationships. At December19, our journey to achieving IAB Gold Standard certification (Buyer/Planner) required us to demonstrate precisely how we do that. Together, these principles and practices show how advertisers can protect not only their budgets but also the ecosystems - digital and environmental - in which we operate.
Why Ad Fraud Matters Now
Ad fraud is no longer a hidden menace. Sophisticated fraud schemes exploit programmatic trading at scale, and advertisers often only discover the leakage long after budgets have been spent.
The numbers are stark.
Research shows that as much as 15% of programmatic spend may be fraudulent, representing billions in wasted investment globally. Beyond inefficiency, fraudulent impressions often fund sites spreading misinformation or harmful content, undermining both brand reputation and societal trust. Fraudulent activity increases the carbon footprint of campaigns, adding emissions without delivering any value.
Nafissa Norris, Head of Membership & Engagement, Conscious Advertising Network, puts it bluntly: "Ad fraud is not a victimless crime - it drains advertiser budgets while funding harmful content and criminal activity. Our Anti Ad-Fraud Guide is about giving advertisers the tools and confidence to take action. Working with agencies like December19, who can demonstrate practical steps through Gold Standard certification, helps us show the industry that change is both achievable and commercially beneficial."
Fraud isn't a technical glitch. It's a systemic risk to advertisers, consumers, and society.
What December19 Has Done in Practice
As an independent media agency, we don't just talk about transparency, we prove it. Achieving IAB Gold Standard certification meant embedding anti-fraud measures into our everyday planning and buying.
Here's what that looks like:
· ads.txt and app-ads.txt requirements: All insertion orders mandate that downstream partners use ads.txt or app-ads.txt, ensuring only authorised sellers can transact inventory.
· sellers.json and SupplyChain Object adoption: We encourage partners to adopt these tools, giving brands transparency into the chain of intermediaries receiving their spend.
· DemandChain Object support: We publicly support the rollout of the DemandChain Object to close remaining accountability gaps.
· OM SDK onboarding: We choose to work with measurement and verification partners integrated with the Open Measurement SDK, ensuring more accurate, standardised reporting.
· Financial client checks: We use the FCA's financial services register for onboarding financial products and clients, protecting both advertisers and consumers.
· Scam Ad Alerts: We've registered relevant team members with the ASA Scam Ad Alerts system and created a formal internal process for managing alerts.
· Team training: We run internal sessions to help staff understand the advantages of these standards and tools, so anti-fraud measures are embedded in everyday practice.
David Lucy, Managing Director, December19, explains our approach: "As an independent media agency, trust and transparency are non-negotiable for us. Achieving IAB Gold Standard certification was about proving to our clients that their investment is protected at every stage of the supply chain. Partnering with CAN allows us to go further, combining ethical principles with operational rigour to deliver media that works better for brands and for society."
We made fraud prevention an operational habit, built into how we protect every client's investment.
How Principles and Certification Reinforce Each Other
The CAN Anti Ad-Fraud Guide and Guiding Principles set out the "why": fraud damages trust, funds criminal activity, and harms society.
The IAB Gold Standard sets out the "how": the specific operational requirements, evidence, and audits needed to ensure these principles are real.
The alignment is clear when you map both together:
CAN Step 1: Fundamentals — Nominate responsibility for fraud prevention → December19 formalised internal training and Scam Ad Alert processes.
CAN Step 2: Conscious Media — Reduce waste and ensure supply chain transparency → December19 mandated ads.txt and SupplyChain Object.
CAN Step 3: Anti Ad-Fraud Guide — Promote accountability in all trading relationships → December19 built requirements into IOs and partner T&Cs.
CAN Step 4: Conscious Questions — Ask "Where is my money going?" → December19 uses sellers.json and verification partners to answer that question in practice.
Patrick Hann, Ad Tech Manager, IAB UK, reinforces the connection: "The Gold Standard exists to raise the bar for the entire digital advertising ecosystem, tackling fraud, improving brand safety, and strengthening transparency. December19's certification shows what's possible when agencies fully commit to those goals."
Together, principles and certification offer advertisers both the vision and the toolkit for tackling fraud.
What Advertisers Should do Next
Every advertiser has the power to reduce fraud in their campaigns. Based on our work with CAN and our Gold Standard certification journey, here are five key questions to consider:
• Are you mandating ads.txt / app-ads.txt in all IOs?
• Do you know who's in your supply chain, and can you prove it with sellers.json or SupplyChain Object?
• Are your measurement and verification partners integrated with OM SDK?
• Do you have a formal process for Scam Ad Alerts and are you registered to receive them?
• If advertising financial products, how do you check legitimacy?
These questions help safeguard budgets, protect reputations, and cut wasted carbon.
Closing Thought
Ad fraud erodes trust, wastes money, and fuels harmful ecosystems. But it doesn't have to. By aligning CAN's Anti Ad-Fraud Guide with IAB Gold Standard certification, agencies and advertisers can move beyond slogans to practical, proven solutions.
Fraud is only hidden when we don't ask the right questions. Conscious, certified media buying shines a light on the problem, and provides the tools to fix it.