Facebook sues two app makers for click fraud with ads

Facebook has sued Hong Kong’s LionMobi and Singapore’s JediMobi. According to the social network, the developers release malware apps on the Google Play Store that inject ads and generate fake clicks.

According to Facebook, users are shown ads and fake clicks are then generated by the apps. The two companies were members of Facebook’s Audience Network for advertising and made money from their practices, but Facebook never paid out and advertisers who incurred costs have been refunded.

There are still apps from LionMobi and JediMobi in the Play Store. For example, it concerns Power Security-Anti Virus, Phone Cleaner. That app has been downloaded 50 million times and has almost 250,000 reviews, according to the download store. Many users complain that the app slows down their phone and shows ads. Another app is Color Note Prote, a so-called note-taking app. It has been installed a million times and in the comments users complain that ads are shown even after the app is closed.

Adware apps and click fraud are not a new phenomenon, but Facebook says the case against the developers is one of the first of its kind. The social network relies almost entirely on advertising revenue.