Affiliate fraud explained is a serious problem in the advertising industry, which can cost businesses as much as $42 billion annually. Unlike other forms of fraud, which often take 6-12 months to find a solution, affiliate fraud is constantly growing faster than companies can respond to it.

Affiliate Fraud Explained

There are a number of ways affiliates commit fraud, from typosquatting to URL hijacking and cookie stuffing. These tactics will generate temporary spikes in conversion but will ultimately lead to revenue loss, disputes and chargebacks.

A common example of this is when a visitor clicks on an affiliate link and then is directed to a malicious website that tries to trick them into making a purchase. Typically, this is done using a technique known as “cookie stuffing,” which forces altered cookies onto users’ browsers to claim sales attribution.

Detecting Affiliate Fraud: Essential Techniques for Enhanced Cybersecurity and Improved ROI

In addition to claiming commissions from transactions that they had no involvement in, these fraudulent affiliates can also use stolen credit card details to make purchases. This type of fraud not only harms affiliate partners, but it can result in a loss of revenue for advertisers as well.

The best way to identify suspicious affiliates is to monitor their traffic quality and behaviour analysis metrics. By logging every user they bring, a merchant can see which affiliates are bringing in high-quality traffic, and which ones are delivering low-quality results.

Another effective way to detect affiliate fraud is to monitor customer complaints and reviews. These are a great way to spot emerging patterns and recurring problems. By keeping an eye out for these, you can prevent fraudulent affiliates from stealing your traffic and money.