What is Affiliate Fraud: How to Detect and Prevent It?

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What is Affiliate Fraud
How to Detect and Prevent It?
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What Is Affiliate Fraud?
Affiliate fraud can significantly impact the
effectiveness of affiliate marketing initiatives.
This marketing approach operates on a
performance-based model, where individuals
affiliated with your business receive commissions
for actively promoting your products or services.
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How Does It Works?
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The Merchant
The Customer
A company recruits affiliates to promote their
products or services.
The customer views the promo, clicks an affiliate
link, and buys.
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The Affiliate
The Commission
Affiliate promotes merchant's products via
website, blog, social media, etc.
The merchant pays the affiliates for tracked
sales through the affiliate link.
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Most Common Types of Affiliate Fraud
Click Fraud
Typosquatting
Affiliate pays for traffic more traffic, higher
commission. Click fraud inflates clicks using
automated bots.
Fraudsters create lookalike sites with similar,
misspelled URLs to steal commissions or engage in
data theft via phishing.
Malicious Adware
Cookie Stuffing
Adware on your computer redirects clicks to
fraudulent affiliate links, aiming to steal
commissions from legit affiliates.
Fake cookies by fraudsters hijack commissions.
Cookie stuffing cuts payouts to legit affiliates,
risking the loss of promoters.
Data Theft
Affiliate fraud seeks data theft. Fraudsters use
fake links to lure traffic, posing as purchases
but aim to steal credit card data for scams.
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The Impact of Affiliate Fraud on Businesses
Increased Costs
Operational Challenges
Damage to Relationships
Brand Damage
Reputational Consequences
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Affiliate Fraud Detection Techniques
Behavioral Analytics
Anomaly Detection
Rules-based Checks
Machine Learning
Manual Review
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How to Prevent Affiliate Fraud
Choose Reliable Affiliate Networks
Monitor Affiliate Activities
Set Up Clear Terms and Conditions
Use Multiple Data Sources
Educate Your Affiliates
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Get in Touch
1 [phone]
info_at_ftxidentity.com
www.ftxidentity.com
146 Rock Hill Drive, Rock Hill, NY 12775