There’s no sugarcoating that native advertising has gained unwanted but not undeserved notoriety. Native advertising networks have historically struggled to filter out poor quality and often fraudulent advertisements, resulting in a channel that has been saddled with the perception that its performance is prioritized over its safety.

While native advertising’s in-feed placements and seamless integration with editorial content drive engagement, skeptics have questioned whether it offers the same level of security as other digital formats. The fear of inappropriate, deceptive claims and association with low-quality sites have steered publishers — especially those with a storied reputation to upkeep — away from a potentially lucrative revenue stream.

However, this stigma is slowly being swept away by technological innovation. Fresh evolution in AI-powered fraud detection and enhanced ad verification techniques — balanced with dedicated human oversight — are giving native advertising a much-needed spring cleaning. The result? A high-performance advertising channel that not only offers scale but also security.

The Escalating Battle Between Fraudsters And Platforms

As native advertising has matured, so too have the tactics of bad actors. There was a time when clickbait — ad titles or imagery that promised one thing but sent the user elsewhere — was the extent of a fraudster’s bag of tricks. Fast-forward to today, and fraudsters come equipped with an arsenal of advanced and dangerously effective weapons.

Native advertising platforms aren’t the only ones adopting AI, as modern ad fraud is enabled by increasingly sophisticated AI-powered trickery. One of the most pervasive threats is cloaking, where deceptive advertisers manipulate verification processes by showing compliant content to reviewers while redirecting real users to scam pages filled with nonexistent products, deepfaked celebrity testimonials and predatory chatbots designed to capture user data or worse.

This is not just an issue of deceptive creative but of an entire fraud ecosystem evolving in real time. Fraudsters leverage geo-specific techniques to adapt their scams based on user location and browser type, making their deception more effective and harder to track. From hijacked landing pages to malicious redirect loops, the battle is no longer found simply in identifying low-quality ads but in dismantling the very infrastructure that enables fraud at scale.

It’s AI Versus AI In The War On Fraud

To stay one step ahead of fraudsters in the endless battle between platforms and criminals, native advertising networks are deploying AI-powered tools of their own to scan, analyze and block fraudulent activity before it reaches users. Machine learning models trained on vast datasets of previous violations — and constantly refreshed with new, real-time data — can identify patterns of deception that are beyond the comprehension of human moderators.

AI-powered content moderation goes beyond simple keyword recognition, incorporating image analysis, real-time landing page verification and behavioral tracking to catch cloaked content and prevent deceptive advertisements from slipping through the cracks.

Of these, behavioral tracking is perhaps the most notable AI innovation in fraud prevention. Instead of simply screening individual ads, we now have the ability to monitor advertiser behavior over time, flagging patterns that indicate fraudulent intent. Matching new campaigns against known violators and tracking for alignment means that behavioral AI can potentially catch fraud before it even occurs, and before it has the chance to cause harm.

While AI is an invaluable tool in the fight against fraud, it is no replacement for human moderation. Rather, it is a powerful sidekick that compensates for human limitations, while humans compensate for AI limitations.

Automated systems are effective at flagging suspicious activity and patterns at scale, but the finer nuances of deception require a human eye. Only we have the full contextual scope required for more complex decisions, as what might appear misleading in one context could be perfectly legitimate in another. With every manual review, more data is fed into AI models, refining their processes and ensuring they continue to adapt to new fraud tactics.

This hybrid approach — where AI handles large-scale detection and human moderators step in for complex cases — creates a multilayered defense system. Combining automation with manual review can uphold ad quality without compromising the scalability that makes the channel so appealing in the first place.

Protection Without Sacrificing Revenue

For publishers, the eternal dilemma of opening their properties up to programmatic advertising is balancing revenue generation with brand safety, both for their own brands and advertisers. High-performing ad campaigns can be a short-term moneymaker, but if they come at the cost of user or advertiser trust, the long-term consequences can be severe.

The latest advancements in fraud prevention technology ensure that publishers no longer have to choose between monetization and security. Publishers can set their own brand safety thresholds, customizing their ad environments based on risk tolerance and audience expectations.

Paired with AI-driven fraud detection and ad verification services, publishers can maintain a high standard of quality without constant manual intervention, which is especially valuable for smaller publishers that lack the resources to maintain their ad operations internally.

However, despite representing a massive evolutionary leap in fraud prevention technology, AI is not a magic bullet, and its limitations need to be understood if we are to avoid complacency.

The first hurdle is data: AI systems need large, high-quality datasets, which are often difficult to obtain due to privacy constraints and the fast-changing nature of ad content. Then, once the data is ingested, the “black box” nature of AI algorithms makes it challenging to interpret how decisions are made. If something goes wrong, it can be hard to pinpoint why and make the necessary improvements.

AI’s predictive powers are also its weakness. Fraudsters are human and thus unpredictable, with the capacity for abstract thought that enables their methods to zig when AI expects them to zag. Models trained on historical data may not recognize new or sophisticated fraudulent activities, necessitating constant updates and retraining to maintain effectiveness.

All these limitations prove that while AI is an invaluable tool in the fight against fraud, it is no replacement for human oversight.

The war against ad fraud is far from over — and it may never be truly won — but the trajectory is clear: Technological advancements like AI and enhanced verification techniques have the potential to make native advertising more secure, achieving parity with lower-performing formats that until now have been favored on safety grounds.

For advertisers and publishers alike, this represents a lucrative opportunity in an open web where it is increasingly challenging to monetize content and reach audiences. A new generation of native advertising is proving that engagement and integrity needn’t clash. Instead of blending in, it’s time to stand out — for all the right reasons.

(As published on Forbes)