How to Prevent Affiliate Fraud
How to prevent affiliate fraud is a real problem in the online marketing space. It can lead to fraudulent leads, double payouts, negative ROI for advertisers, weakened advertiser credibility, and more – and it all hurts everyone involved in the process.
Detecting affiliate fraud is not an easy task, so catching it early is crucial. Luckily, there are several preventive steps you can take to stop it before it starts.
First, create a screening process to filter out potential fraudsters before they join your program. This can include adding custom fields to your affiliate application form that ask them to provide their social media handles and other personal details, or checking their background online.
Preventing Affiliate Fraud: Essential Techniques for Enhanced Cybersecurity and Fraud Prevention
Next, set out a clear list of terms and conditions that affiliates must adhere to before they can participate in your program. Ensure that those who don’t comply with the rules are penalized, and routinely review and update them to help keep your program safe.
Third, monitor time-to-conversion and conversion rate averages by individual affiliates to look for outliers that could indicate fraud. If one affiliate has a much faster time-to-conversion than your average, this may be an indication that they’re using fraudulent methods to make quick cash.
Finally, delay payment to your affiliates for fraudulent purchases to make it harder for them to scam you and earn their commissions. Typically, you want to wait 30-45 days after a sale before releasing funds to affiliates. This will give you a chance to identify and resolve any issues before they turn into full-blown scams that cost you money and hurt your program.