Digital marketing is continuously evolving, with new technologies reshaping the online landscape. In our connected world, emerging technologies like the Internet of Things (Iot) and virtual reality (VR) have opened up new advertising possibilities. However, not all of these developments are positive.
Cybercriminals constantly refine their tactics, creating more sophisticated malware. Some, like ransomware, can lock down entire systems, causing significant financial losses or forcing companies to shut down. Among these threats, malvertising remains a critical yet often overlooked risk that advertisers must address.
What Is Malvertising?
Malvertising—short for malicious advertising—is a deceptive practice in which cybercriminals use online ads to spread malware. These infected ads, often indistinguishable from legitimate ones, redirect users to compromised websites, leading to file corruption or unauthorized access to devices.
One infamous case occurred in 2009 when the NY Times website inadvertently distributed malware, forming the Bahama botnet, a network of hijacked computers used for large-scale fraud. Today, cybercriminals craft ads so convincingly that even the most reputable websites may unknowingly host them.
Malvertising Trends
Malvertising is a growing issue. Cybercriminals increasingly exploit the trust users place in legitimate websites and ad networks, making it a persistent and evolving threat. Recent statistics highlight its rising prevalence and sophistication.
In the first half of 2023, AdSecure reported a 140.7% increase in phishing URLs tied to malvertising alongside a 106% rise in permission-camera attacks, indicating a shift toward more deceptive and privacy-invasive tactics.
GeoEdge’s Q1 2024 findings noted that misleading product offers comprised 29% of malvertising attacks, up from 26% in 2023, while auto-redirects accounted for 25% of incidents, showing attackers’ reliance on diverse methods.
Malwarebytes tracked a 42% month-over-month increase in malvertising incidents in the U.S. during fall 2023, underscoring its rapid growth. (Source: CNBC)
Statista estimated that malvertising grew by 35 to 50% in 2023, far outpacing the 3.3% growth in regular ad spending, reflecting its disproportionate rise. (Source: Statista)
These figures demonstrate that malvertising is not only increasing in frequency but also adapting with more sophisticated techniques. It targets both individuals and enterprises across platforms like mobile devices, social media, and search engines. The reliance on programmatic advertising and the complexity of ad networks further fuel its spread, making it a critical cybersecurity concern.
How Malvertising Works
Malvertising operates by embedding malicious code within online advertisements displayed on websites through ad networks. Cybercriminals infiltrate legitimate advertising platforms, submitting ads that appear authentic but contain hidden malware. These malicious ads are distributed across multiple websites through automated real-time bidding and ad exchanges.
When users interact with these infected ads—or, in some cases, load a page containing them—the malware executes, compromising their devices. Some forms of malvertising use drive-by downloads, where no user interaction is required for infection. Attackers exploit vulnerabilities in web browsers, outdated plugins, or operating systems to install malware silently. Once compromised, a user’s device may be used for data theft, system hijacking, or as part of a botnet for larger-scale cyberattacks.
Unlike direct website infections, where malware is placed on an advertiser’s site, malvertising spreads through ad networks, making detection difficult. Since these ads originate from trusted platforms, publishers and users often remain unaware of the threat until it has already caused damage.
How Malvertising Threatens Advertisers
Malvertising poses a dual threat: advertisers risk both financial loss and reputational damage. Third-party ad placements, particularly those using real-time bidding, introduce vulnerabilities. Since these ads are hosted on external servers, advertisers lose control over their content, increasing the risk of distributing malicious ads.
Beyond financial concerns, reputation damage is a severe consequence. Even if an infected ad is quickly removed, users may associate the brand with security risks, leading to a loss of trust. Given the increasing importance of online reputation, advertisers cannot afford to overlook these risks.
How to Protect Against Malvertising
Advertisers must implement strict vetting processes to protect a digital campaign from malvertising when selecting ad providers. Prioritizing trusted networks that enforce rigorous security protocols can significantly reduce the likelihood of malicious ads slipping through. Continuous monitoring of ad performance is crucial—unusual spikes in bounce rates or abnormal site behavior may indicate a security breach.
Anti-malvertising solutions, such as ad verification software, can preemptively detect and block malicious advertisements before they reach the audience. Advertisers should also consider opting for direct deals with reputable brands rather than relying on third-party ad networks, which can be more vulnerable to fraudulent activity. Another essential measure is restricting third-party (3P) access to advertising platforms by enforcing multi-factor authentication and other advanced security controls.
Takeaways
Ad Security Measures: Regularly vet advertising partners, monitor ad performance, and use security solutions to minimize risks.
Browser Safety: Install ad blockers, disable vulnerable plugins, and use reputable browsers with built-in security features.
Cyber Hygiene Practices: Maintain updated security software, avoid suspicious links, and educate teams on recognizing threats.
Direct Ad Deals: Working with trusted partners instead of third-party networks enhances security and minimizes exposure to malvertising.
Encryption and Protection: Use VPNs and multi-factor authentication to secure business accounts and advertising platforms.
Fraud Awareness: Stay informed about emerging threats, participate in security forums, and share insights to improve industry-wide safety.
General System Security: Keep all software updated, use complex passwords, and conduct regular security audits.
Human Factor Vigilance: Train employees to recognize phishing attempts and enforce company-wide security policies.
Malvertising is an evolving and growing threat that demands constant vigilance. By implementing strong security protocols and staying informed, advertisers can protect their brands, customers, and bottom lines from malicious attacks. Staying ahead of cybercriminals requires a proactive approach, emphasizing security at every stage of digital marketing.
©2025 DK New Media, LLC, All rights reserved | DisclosureOriginally Published on Martech Zone: Malvertising: How To Protect Your Brand’s Reputation From This Growing Reputation Threat