What is Malvertising and Why is it so Dangerous for Businesses?

February 28, 2025

Online advertising serves as an incredibly important feature for businesses aiming to reach broader audiences. However, with the ever-increasing number of sophisticated cyber threats, a new menace has emerged within this domain: malvertising.

Whilst it honestly sounds like a silly, completely made-up combination of words, it is in fact a deadly serious term, which has potentially catastrophic outcomes towards businesses.

Let’s jump into the concept of malvertising, and learn a bit more about what it is, how it works, and how businesses can look to be more prepared when faced with the issue.

What is Malvertising?

Malvertising, a clever combination of the terms “malicious” and “advertising,” refers to the practice where cybercriminals embed malicious code within legitimate online advertisements. These tainted ads, when displayed on websites even with a good reputation, can inadvertently expose users to malware infections or redirect them to harmful sites without any direct interaction. The deceptive nature of malvertising lies in its ability to exploit trusted advertising networks, making it a formidable threat to both users and businesses.

This is a cyber concern that Adept IT Solutions can assist with. Ensuring that your devices are free from harm, and operating optimally is our number one priority. Contact us today if you are needing assistance in the battle to stop malvertising.

How Does Malvertising Work?

website page with invasive ads showcasing malvertising

The process typically begins with cybercriminals infiltrating legitimate ad networks. By posing as genuine advertisers, they introduce malicious content into the ad supply chain. Once these compromised ads are published, they can execute various attacks:

  • Drive-by Downloads: Automatically download malicious software onto a user’s device upon the ad’s display, requiring no user interaction.
  • Phishing Ads: Mimic legitimate brands to deceive users into divulging sensitive information, such as login credentials or financial details.
  • Redirects to Malicious Sites: Lead users to fraudulent websites designed to exploit vulnerabilities or harvest personal data.

How Cybercriminals Inject Malware into Ads

To truly grasp the idea of what malvertising is, and understand its dangers, it is important to be aware of exactly how they are created and implemented by cybercriminals.

Online advertising can be a gateway for cybercriminals to implement their malvertising efforts. Attackers exploit ad networks, creative formats, and tracking pixels to inject malicious code, putting businesses and users at risk. Here’s how malware can infiltrate digital ads:

1. Malware in Ad Calls

When a webpage loads an ad, the ad exchange pulls content from third-party servers. If an attacker compromises one of these servers, they can inject malware into the ad payload, infecting users who simply view the ad. This explains just how dangerous malvertising really is, as you can simply be viewing a webpage and become at risk.

2. Malware in Post-Click Redirects

After clicking an ad, users are often redirected through multiple URLs before reaching the intended landing page. If any of these redirect links are compromised, attackers can execute malicious code along the way.

3. Malware in Ad Creatives

Malicious code can be embedded directly into ad banners or text ads. HTML5-based ads, which combine images and JavaScript, are particularly vulnerable. Older Flash (.swf) ads also pose a significant risk due to their ability to carry embedded malware.

4. Malware Hidden in Tracking Pixels

Tracking pixels, which are small pieces of code used to collect data, are commonly placed in ad calls and landing pages. While legitimate pixels only track user activity, cybercriminals can intercept and modify these pixels to inject malware into a user’s browser.

5. Malware in Video Ads

Video players lack built-in protection against malware. Standard video formats like VAST can include third-party tracking pixels, which, if compromised, deliver malicious code. In some cases, malware is spread by displaying a malicious URL at the end of the video.

6. Malware in Flash Videos

Flash-based video ads pose an even greater risk. Cybercriminals can inject an invisible iframe into the video player, triggering a malware download without user interaction. Malicious code can also be embedded in pre-roll banners that load before the video starts playing.

7. Malware on Landing Pages

Even trusted websites can be compromised. If an attacker injects malicious code into a landing page’s clickable elements, users who interact with the page unknowingly trigger malware execution. This method is particularly deceptive because the page itself appears legitimate.

person sitting at desk with laptop typing on keyboard with a no pop up ads on screen for malvertising

The Dangers of Malvertising to Businesses

Financial Implications

Malvertising can have severe financial repercussions for businesses. The immediate costs involve system remediation, data recovery, and potential legal fees. Additionally, if customer data is compromised, companies might face regulatory fines and compensation claims. These factors combined can significantly strain an organisation’s financial resources.

Reputational Damage

Trust is paramount in business relationships, and always has been. A malvertising incident can erode customer confidence, leading to diminished brand loyalty and a tarnished public image. News of a data breach can spread rapidly, amplifying negative perceptions and potentially resulting in not only the potential loss of clients, but also an inability to bring on new customers due to a lack of faith and trust.

Operational Disruptions

Malvertising attacks can disrupt business operations by compromising critical systems. Infected networks may experience downtime, hindering productivity and service delivery. Moreover, the time and resources required to address these breaches can divert attention from core business activities.

Some examples of these data breaches, which can potentially occur from malvertising, are the Optus Data Breach, MediSecure Data Breach, and the ClubsNSW Data Breach.

How to Identify and Prevent Malvertising

Recognising the Indicators

Businesses should remain vigilant for signs indicative of malvertising:

  • Unusual System Behaviour: Unexpected pop-ups, redirects, or sluggish performance can signal malicious activity.
  • Security Alerts: Notifications from antivirus or security software about threats linked to ad content visible on your devices.

Preventative Measures

To safeguard against malvertising, businesses can implement the following strategies:

  • Regular Software Updates: Keeping systems and applications current ensures that known vulnerabilities are patched promptly.
  • Ad Network Vetting: Collaborate with reputable ad networks that prioritise security and have stringent vetting processes for advertisers.
  • Employee Training: Educate staff about the risks associated with clicking on unfamiliar ads and recognising phishing attempts.
  • Use of Ad Blockers: Deploy tools to reduce exposure to potentially malicious advertisements.

Best Practices for Businesses Against Malvertising

Implement Robust Cybersecurity Protocols

Establishing comprehensive cybersecurity measures is essential. This includes deploying advanced firewall and antivirus solutions to monitor and protect network traffic. Regular security audits can help identify and address potential vulnerabilities before they are exploited.

Develop an Incident Response Plan

Preparation is key to mitigating the impact of malvertising attacks. An effective incident response plan should encompass:

  • Preparation: Implement a dedicated Managed IT Services team and establish clear procedures for addressing security incidents.
  • Response: Outline steps to contain and mitigate the effects of a malvertising breach.
  • Recovery: Focus on restoring systems and data, and communicate transparently with stakeholders about the incident.

Stay Informed

The cybersecurity landscape is continually evolving. Businesses should:

  • Continuous Education: Stay updated on the latest malvertising tactics and cybersecurity trends.
  • Engage with Cybersecurity Communities: Participate in forums and networks to share information and strategies.

Adept IT Solutions: Your Partner in Cybersecurity

business people shaking hands over a desk with a clipboard with report on it

Navigating the complexities of cybersecurity requires expertise and proactive measures. Adept IT Solutions offers a suite of IT services tailored to protect businesses from threats like malvertising:

  • Comprehensive Security Assessments: Identify vulnerabilities within your systems and provide actionable recommendations.
  • Advanced Threat Monitoring: Continuous surveillance to detect and neutralise potential threats before they impact your operations.
  • Employee Training Programs: Equip your staff with the knowledge to recognise and avoid cyberattack attempts.
  • Incident Response Planning: Develop and implement robust plans to ensure swift action in the event of a security breach.

By partnering with Adept IT Solutions, businesses can fortify their defences against malvertising and other cyber threats, ensuring operational continuity and safeguarding their reputation.

Protect your Business from Malvertising Today!

Malvertising represents a significant threat in the digital advertising landscape, with the potential to inflict substantial financial and reputational damage on businesses. By understanding its mechanisms and implementing proactive measures, businesses can protect themselves and their stakeholders from this dangerous cyberattack.

Engaging with IT experts like Adept IT Solutions further enhances a company’s resilience against such cyber threats, ensuring a secure and trustworthy environment for both employees and customers.

With over 20 years of experience providing an extensive list of services to our valued customers, Adept IT Solutions knows what it takes to keep your business safe from cyberattacks of all kinds. If you’re ready to experience the difference of high-quality IT services, contact us today! You can reach us at 1300 423 378 or email us at info@adept-it.com.au.

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