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Not long after, they noticed hidden and suspicious code being loaded in the VidMate app through a third-party SDK called Mango. Researchers analyzed all HTTP traffic coming in and out of the device to see if anything stood out. To confirm the suspicious activity, researchers were given access to three smartphones with VidMate installed where users said they'd noticed 'unexpected data use, overheating and reduced battery even when the device was not in use.' However, in exchange for that convenience, users are being subject to unwanted charges and data use, Upstream said.
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The app is popular in developing areas where spotty network coverage may make it easier to download rather than stream mobile content.
In addition to hidden ads, VidMate also signs users up for paid services without their consent. Users were primarily targeted in Egypt, Myanmar, Brazil, Qatar, South Africa, Ethiopia, Nigeria, Malaysia and Kuwait. The growing sophistication of disguised malware calls for an ever more vigilant approach.' 'The VidMate example, whereby a single app is responsible for 130 million suspicious transaction attempts over a few months, is cause for great concern. 'Mobile advertising is a multi-billion-dollar industry on the rise and a very fertile ground for fraud,' Guy Krief, CEO of VidMate, said in a statement. Had they not been blocked, they could have cost users a boatload of unwanted charges. Upstream researchers blocked over 128 million malicious mobile transactions that were attempted by the VidMate app on 4.8 million devices. They discovered that VidMate has a hidden component within the app that delivers hidden ads, generates fake clicks and purchases, installs malicious apps and siphons off users' private information - all without their knowledge.Īs a result, it eats up users' data allowance and costs them money. Researchers from Secure-D, the mobile ad fraud division of UK-based technology firm Upstream, detailed their findings in a post published on Monday.
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