According to White Ops, a digital advertising security company based in New York City, those rented computers are connected to a network of more than 570, 000 Internet addresses apparently leased or hijacked from various sources.

White Ops dubbed the video ad fraud network “Methbot, ” and says the individuals at the helm of this network are spending upwards of $200, 000 a month just maintaining a fully automated fraud network that imitates real Web site publishers showing real viewers video-based advertisements.

Ryan Castellucci, principal security researcher at White Ops, said Methbot’s coders built many of the fraud network’s tools from scratch — including the Web browser that each rented computer in the network uses to mimic Web sites displaying video ads. Spoofing actual news Web sites and other popular video-rich destinations, Methbot requests video ads from ad networks, and serves the ads to a vast array of bots that “watch” the videos.

To make each Web browsing session appear more like one generated by a human, Methbot simulates cursor clicks and mouse movements, and even forges social network login information so that it appears the user who viewed the ad was logged in to a social network at the time.

“They’ve written their own browser from scratch in Javascript, and this allows them to arbitrarily control the information that gets fed back to the ad networks and to companies like us who try to detect this stuff, ” Castellucci said. “This has allowed Methbot to scale to beyond anything the industry has seen before, putting it in a new class of ad fraud.”

Interestingly, the registration records for virtually all of those Internet addresses have been forged so they appear to be controlled by some of the world’s largest Internet service providers (ISPs).

Whoever dreamed up Methbot clearly spent a great deal of time and money building the fraud machine. For example, White Ops says the address space alone used by this ad fraud operation has a current market value of approximately $4 million. A full list of the 570, 000+ Internet addresses used by Methbot is published in the White Ops report page.