What do we mean by a fraudulent ad? What does this look like?

In some cases, fraudulent ads can appear surprisingly genuine. Take, for example, a recent experience involving Lucy & Yak, an independent brand known for its organic and recycled clothing. I was recently served an advert that seemed to promote an impressive sale. As they're a brand I frequently interact with online, seeing a Lucy & Yak ad wasn’t out of the ordinary, and the offer itself was attractive enough to make me pause. But on closer inspection, there were a few warning signs:

1. Account authenticity: The ad wasn’t coming from Lucy & Yak’s official social media page but rather from a page with a similar name but different profile image.
2. Too-good-to-be-true pricing: The sale prices offered seemed unusually low, especially for an independent, ethically-minded brand known for its sustainable materials.
3. Mismatch of visuals and branding: The ad used video content lifted from Lucy & Yak’s genuine social media content, including footage of staff in a branded store. However, the messaging and setup didn’t quite align with Lucy & Yak’s typical promotional style.

By cross-checking on the brand’s official website and social media, it became clear no such sale was running. In fact, when I contacted Lucy & Yak directly they quickly confirmed that the ad was a scam they were working hard to have removed.

This example highlights key red flags that consumers should look out for with online ads:

• Verify the source: Always check that the ad is posted by the brand’s verified account. Fraudulent ads often use similar but slightly altered profiles.
• Assess the offer’s credibility: If the offer seems unusually generous, pause and verify it on the brand’s official website.
• Trust, but double-check: Contact the brand directly if you’re unsure about a promotion’s legitimacy.

Without a cautious approach, customers might click on a fraudulent link that can lead to phishing sites or other harmful destinations. As brands, it’s crucial to be aware that fraudulent ads like these can have lasting impacts on trust and brand loyalty, ultimately affecting both customer relationships and bottom lines.

The impact of fraudulent ads on brand reputation

Fraudulent ads aren’t just a nuisance; they can be damaging for a brand’s reputation. Fake ads often aim to mimic the look and feel of legitimate campaigns, but with malicious intent—luring customers to untrustworthy sites, stealing sensitive information, or tricking users into purchasing counterfeit products. When customers encounter these scams, even if your brand is not directly involved, it’s your reputation that suffers. Consumers may question the safety of engaging with your brand, assuming you haven't implemented appropriate protective measures.

In addition, fraudulent ads can affect the algorithms and ad quality scores on platforms, harming your campaign's effectiveness and increasing costs. And the larger impact - losing the hard-earned trust of your audience can be even more damaging in the long term.

Key steps to protect your brand

To safeguard your brand, consider these best practices for securing your accounts and maintaining control over your digital assets:

1. Account verification with real people: One of the most critical steps for securing your accounts is ensuring that all user accounts are tied to real individuals who can verify their identity. This means associating accounts with named individuals rather than generic email addresses like “[email protected]”. Platforms are increasingly cracking down on fake accounts and will often flag those that don’t appear to be owned by real people. This has led to brands losing access to their accounts and, in some cases, having their pages shut down. And if you want to report other pages or ads for inappropriate conduct you must make sure your account is ready for inspection.
2. Account security & admin access: Make sure all your ad accounts and platforms have strong, unique passwords that are updated regularly. Enabling two-factor authentication (2FA) is another essential layer of protection. Limit admin access to trusted individuals - having one or two key administrators is generally sufficient. While it’s important to ensure there’s a backup admin for emergencies, avoid making your account admin-heavy to minimise the risk of unauthorised access.
3. Review and update access regularly: Periodically review access permissions across all your digital platforms. Remove former employees or team members who no longer work on the project immediately. This practice reduces potential vulnerabilities and ensures that only the necessary personnel have access to your accounts.
4. Vigilance with new campaigns and partners: Before launching new campaigns or working with third-party vendors, verify that they follow industry best practices and have robust security protocols in place. Always vet new partners and insist on transparent reporting for any third-party work to reduce the risk of inadvertently promoting or hosting fraudulent content.

What to do if you discover fraudulent ads

If you come across a fraudulent ad that is linked to or misuses your brand, taking immediate action is essential. Most ad platforms provide built-in reporting mechanisms for users to report inappropriate or suspicious content. Facebook, Google, and other major platforms allow you to flag ads directly, with options to explain the fraudulent nature of the content. Additionally:

• Report directly to the platform: Make use of the reporting tools provided on the platform where the ad appears. Platforms often have dedicated teams to investigate fraud and can remove the offending ad, helping to prevent further customer exposure.
• Notify legal or compliance teams: Your legal or compliance team may be able to send a cease-and-desist letter or escalate the issue with the platform if necessary.
• Monitor for future instances: Stay alert for any recurring or similar fraudulent ads. Set up alerts to monitor mentions of your brand online, which can help you spot fraud early on.

Educating customers to spot fraudulent ads

An informed customer base is one of your best defences against fraud. Educate your audience on how to identify and report suspicious ads that appear to be from your brand:

• Encourage safe browsing: Remind customers to check for secure URLs (e.g., “https://”) and to be cautious about clicking on ads that seem unusually urgent or too good to be true.
• Create a ‘Safety Tips’ section on your site: Consider adding a section to your website with tips on spotting fake ads and protecting personal information. This can be especially helpful for new customers who may be more vulnerable to fraud.
• Regularly engage on social media: Use your social media channels to remind customers about the importance of secure browsing and to address any fraudulent ads or phishing schemes that may come up. Your openness will reassure them and demonstrate that your brand takes their security seriously.

Wrapping up

In today’s digital landscape, brand protection requires proactive and ongoing effort. Fraudulent ads are more than a minor inconvenience; they pose serious risks to your brand’s trustworthiness and can have a lasting impact on customer loyalty. By securing your accounts, carefully managing admin access, and reporting fraudulent activity, you’re taking essential steps toward safeguarding your brand. Educating your customers to spot and avoid scams adds another line of defence and reinforces trust.

As a digital marketing agency, we know that maintaining the integrity of your brand is key to building lasting customer relationships. With vigilance, proactive measures, and open communication, your brand can thrive—secure, trusted, and ready to weather the challenges of the digital age.