Cheating in online games isn’t just a nuisance for players—it’s a billion-dollar industry that drains revenue and destabilizes game ecosystems. In 2019, the gaming industry faced an estimated $29 billion in revenue losses due to cheating, and today, as gaming expands, those losses are likely even higher.
In this blog post, we’ll delve deeper into the multifaceted impact of cheating on the gaming industry, focusing particularly on commercial cheating operations—organized groups that exploit games on a large scale for profit. These operations generate billions of dollars, and with such high financial incentives, they won’t stop easily. For game studios, this creates persistent challenges that threaten both their revenue and player experiences.
For a broader understanding of cheating typologies and tools, read our cheating typologies blog.
Cheating Harms In-App Purchase Revenue
In-app purchases (IAP) are the backbone of revenue for many mobile games, generating billions of dollars annually. Cheating directly undermines this critical revenue stream, threatening the financial stability of game studios.
One common cheating service is boosting, in which players share their account credentials with cheaters, who then log in to their accounts and rapidly boost their progress. Using bots, scripts, or other cheating tools, the cheaters amass large quantities of in-game resources and achievements, allowing the player to progress quickly without putting in any time or effort. While this might seem like an easy win for the player, it undermines the integrity of the game and disrupts its economy.
Cheaters also use automation and other tools to flood the in-game economy with valuable items, which they sell outside the game at cheaper prices. Players often turn to these external sources for a faster or more affordable way to acquire items, further bypassing the in-app purchase system.


A variety of in-game items and boosting services available in online marketplaces.
Cheaters Inflate User Acquisition Costs
User Acquisition Fraud refers to any activity that artificially inflates the number of installs, clicks, or views on a mobile game. Within this broad category, a significant and growing challenge is User Acquisition Manipulation, where bots or cheaters mimic real player behavior to distort campaign metrics. This manipulation has significant financial consequences for game studios. With mobile games’ ad spend projected to reach $103 billion in 2024 and $131 billion in 2025, the stakes are higher than ever. Imagine how much game studios stand to lose when a portion of this spend is wasted on fake traffic instead of reaching genuinely engaged players.
Fraudulent players—using bots or automated scripts—interact with in-game ads, download apps, or simulate actions like reaching specific game levels, causing studios to pay for fake traffic. For example, in cost-per-install (CPI) or cost-per-engagement (CPE) campaigns, studios pay for each new user install or engagement, with higher fees tied to deeper actions like reaching a certain level or making an in-app purchase. Fraudsters exploit this by setting up bot networks to mimic real user behavior, misleading studios into believing they are successfully acquiring genuine players.
Reward apps and offerwalls, where players earn real money or in-game rewards for their engagement in games, are particularly vulnerable to User Acquisition Manipulation.With direct financial incentives at play, commercial cheating operations aggressively exploit these systems. By deploying bots and scripts to generate fake engagements, they inflate campaign performance metrics. The incentive to cheat in reward apps is so high that these manipulative activities persist and are challenging to eliminate.
Addressing these challenges is critical to protect game studios’ resources and ensure their investments lead to real, meaningful engagement.
Cheating Skews Player Analytics
When cheaters disrupt game data, the consequences are serious—flawed decisions, wasted resources, and a distorted understanding of player behavior. In some cases, as many as 20% to 40% of players may be cheaters, often part of larger commercial cheating operations, making analytics unreliable.
Online games generate massive amounts of data, and game developers rely on this data for crucial insights—whether it’s deciding which features to add or remove, allocating their media budget, or expanding into new regions. For this data to be valuable, it must be reliable and accurate.
Imagine a studio seeing a spike in signups and traffic from a particular group. The studio might think these positive User Acquisition metrics are due to a successful marketing campaign and decide to double down on it. However, if the new accounts are mostly cheaters, its marketing decisions will be flawed. Similarly, they might be concerned about a sudden drop in retention among new players.
Making decisions about changes to the game also relies on gameplay data to reflect player preferences and engagement. When cheaters’ actions are mixed with legitimate player behavior, it skews the analysis, leaving developers uncertain about what features resonate or how long players spend on key activities. Without accurate insights, studios are unable to fully understand and cater to their real audience.
To avoid flawed decisions, game studios must filter out cheaters from their datasets. Cleaning this data ensures a clearer view of what’s actually happening, helping studios track key performance indicators more accurately and make better-informed decisions.

A GIF showing two graphs of the same app: one with all user traffic and one with authentic user traffic, highlighting how skewed data can lead to misinformed decisions.
Cheaters Undermines Community Sentiment
For game studios, the stakes are high: around 1% of players—often referred to as ‘whales’—generate 50%-70% of in-app purchase revenue. These valuable players are crucial for profitability, but they won’t stick around in a game they believe is rigged by cheaters. Even the suspicion of cheating can leave a bad taste, leading to negative reviews, player churn, and a damaged reputation.
Cheating disrupts the trust and enjoyment that are core to the gaming community. Online gaming is more than just a pastime—it’s a deeply social experience. Avid gamers often meet in person or coordinate online sessions to enjoy the game together. This tight-knit community is built on trust, and when cheaters infiltrate, that trust is broken, creating dissatisfaction and frustration.
In most online games, there’s a vibrant in-game economy where players can earn items through gameplay or purchase them via in-app purchases. Cheaters disrupt this delicate balance, skewing supply and demand and leaving legitimate players feeling disillusioned.
When cheaters dominate, they create an unpleasant environment for real players. Legitimate players may face frustrating scenarios with artificially inflated options while playing the game or receive spammy friend requests tied to cheater operations. These issues degrade the players’ experience, harm their connection to the game, and often lead to churn.



Examples of players sharing their frustration about cheating in popular games on Reddit.
Cheating Increases Cloud Costs
Cheating significantly inflates operational expenses for game studios, with cloud infrastructure—one of their largest costs—taking the biggest hit. Inauthentic activities, such as bot networks and automated scripts, increase usage dramatically, forcing studios to spend millions more on cloud resources each year.
Cheaters, especially malicious bots, automation, and scripts, tend to be far more resource-intensive than legitimate players. While a human player might log in for a few hours a day, a bot can run 24/7 for weeks on end. Even if cheaters account for a small percentage of players (say 4%), they can still account for a massive amount of gameplay time (say 40%); eliminating them could save tens of millions of dollars annually.
However, it’s not as simple as just taking action against cheaters. They often find alternative methods to access the game and persist with their activities, meaning game studios must continuously monitor suspicious behavior and mitigate cheating.
Cheating Increases Support Costs
Cheaters significantly strain a game studio’s support system, driving up operational costs. One of our customers, for example, was spending several million USD per month on support tickets, with a significant portion tied to fraud.
Legitimate players often submit support tickets after encountering suspicious activity, which requires thorough investigation by the game studio. However, commercial cheating operations present an even bigger challenge. These operations flood support systems with fraudulent requests in attempts to take over player accounts.
Using stolen personal information, cheaters might claim to have lost access to an account and trick the support team into handing it over. For instance, a cheater with a player’s email address could request account access by claiming to have forgotten “their” password. Some even resort to brute-force methods to hack into accounts.
While chatbots can handle simpler tickets for as little as $0.15 per ticket, resolving fraud-related cases often requires human agents, costing around $4 per ticket. With hundreds of thousands of tickets opened daily, these costs can quickly escalate, creating significant financial strain for game studios.
Cheating Inflates Direct Marketing Costs
Cheating doesn’t just affect gameplay; it also wastes marketing budgets, draining resources that could otherwise drive player engagement. When a significant portion of a company’s database consists of cheaters, the money spent on marketing campaigns is essentially being thrown away.
Consider a gaming studio that wants to reach out to its player base via email or text to announce a new feature, highlight a competition, or share other marketing content. To ensure these messages don’t end up in spam folders, the studio must use compliant email or text message providers, which typically charge based on the number of recipients.
Each dollar spent on sending marketing messages to cheaters is a lost opportunity to engage real players who contribute to the game’s success. Cheating directly undermines marketing efforts, adding yet another layer to the financial strain it places on game studios.
Cheating in Online Games Is Not a Victimless Crime
Cheating in online games impacts everyone involved. Game studios suffer from lost revenue, wasted resources, and the inability to make informed decisions. Engaged players feel betrayed, and in some cases, they may even churn.
To combat this, game studios need to gain visibility into cheater accounts, take back control over cheater networks, and make strategic, creative decisions to restore balance and protect the integrity of their games.
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How is cheating impacting your game? Contact Quago to find out.