The influencer game is won by numbers, but what happens when those numbers are a carefully constructed façade? Beneath the viral moments, a shadow market thrives, where engagement is manufactured, metrics are inflated, and the illusion of influence is sold — and bought.
“Follow for Follow” Just Got Smarter
An industry insider, speaking on the condition of anonymity, explains how influencer fraud has evolved over time. “‘You follow me, I follow you’ has been a thing since the very inception of formal influencer marketing. When we started a few years back, it was prevalent then, and it still is now.”
The industry’s reputation has been tarnished, they said, by “the infiltration of fly-by-night operators and relatively new so-called influencer marketing companies.” This damage has led to a climate where “brands are scrutinizing every collaboration.” To counter this, “contractual safeguards to penalize fraudulent activity and ensure transparency are becoming standard.” The speaker emphasizes a critical choice: “The industry is at a crossroads. Brands must decide whether to chase short-term metrics or invest in long-term trust.” While “the bigger players are leading the push for authenticity,” the overall “direction remains uncertain.”
AI-Driven Manipulation Is In
Influencers have long used engagement pods—private groups where members like, comment on, and share each other’s content—to boost their numbers. But as the industry evolves, so do the tactics.
“WhatsApp engagement pods are old news. The real game now? Bot-powered follower, view, and comment inflation—cheaper and easier than ever,” says Anirudh Sridharan, Co-Founder and Head of Product at HashFame.
Sreeram Reddy Vanga, CEO & Co-Founder of Kofluence, sees these tactics play out firsthand. He notes that engagement pods are particularly common in lifestyle, fashion, gaming, and parenting niches, where collaboration is a natural part of audience-building.
“Most influencers view it as a way to break through algorithmic biases and build niche communities,” he says. “But brands can be misled into partnerships that promise reach and engagement but deliver little real impact.”
“Brands, agencies, and influencers all know that fake engagement doesn’t translate to real consumer action—it undermines campaign effectiveness. The emphasis on authentic influencer relatability, content, and a genuine follower base still holds. Even if cartels operate in tandem, the industry has evolved to not only recognize but also address those red flags,” according to SHudeep Majumdar.
AI Is Now Both the Problem and the Solution
To combat influencer fraud, agencies are turning to AI-driven fraud detection tools.
“We look for suspicious patterns—sudden engagement spikes, repetitive comments, bot-like activity,” Vanga explains. “Our platform integrates real-time automation for audience refinement, influencer selection, negotiation, and content analysis, so brands can make KPI-based decisions.”
Yet, the question remains: how much do brands truly care about authenticity?
“Some care deeply; others just want numbers that look good,” says Sridharan. “Unrealistic brand demands often push creators to fake it. Does that justify it? No. But it explains why it happens.”
As influencer fraud evolves, AI plays a dual role—both in facilitating engagement manipulation and in detecting it. Automation bots, coordination software, and content optimization AI make it easier than ever for influencers to game the system. But AI-powered detection tools, such as Social Blade’s pattern recognition, HypeAuditor’s anomaly detection, and Brandwatch’s network analysis, are constantly working to expose fraudulent activity.
The Next Disruption: AI-Generated Influencers
Beyond fraud detection, AI is reshaping influencer marketing in another way: the rise of AI-generated influencer avatars.
Rashi Agarwal, founder of Megalodon explains that brands are becoming increasingly aware of AI’s potential. “Until 2024, brands were largely unaware of AI’s capabilities, but in the last three months, they have become more informed,” she says. “Many briefs now specifically request AI-generated content. AI helps analyze backend engagement metrics, determining what works best. Instagram has highlighted that the first three seconds of a video are critical for engagement, and AI can optimize content to maximize impact.”
But while brands are intrigued by AI’s potential to cut costs and streamline content creation, there’s an inherent risk.
“Consumers might view AI-generated influencer content as engagement fraud, leading to a devaluation of influencer marketing itself,” Agarwal warns.
And with at least one top Indian influencer already working on an AI avatar project, this shift is not just hypothetical—it’s happening now.
As AI infiltrates every layer of influencer marketing; from engagement manipulation to full-fledged AI influencers —the industry is at an inflection point. Will brands continue to chase numbers, or will they finally prioritize authenticity over appearance?
One thing is certain: the game is changing, and only the smartest players will stay ahead.