In this episode of the Affiliate Marketing Podcast, Lee-Ann chats with Rich Kahn, founder of Anura.io, to discuss the topic of affiliate fraud. Rich discusses the current state of affiliate fraud, its impact on brands and businesses, and the different types of fraud that exist. He also emphasizes the need for continued vigilance and staying ahead of emerging fraud trends. Join us both as we provide practical tips and strategies to prevent affiliate fraud.
Listen here for all the insights.
Affiliate fraud definition
Lee-Ann first asked Rich to define exactly what affiliate fraud actually means and how it impacts brands and businesses.
Rich explains: If you try “ad fraud” on Google, you'll find probably 1,000 different types of scams that exist on the market. So I have been developing his digital marketing company on the Internet since 1993. Over the years, I've come up with two rules. One is that people don't read, they take their time and skim until they find what they want to read. But secondly, if you pay someone to do something for you, scammers will find a way to cheat.
“So affiliates get paid to do something. Generate leads, get visitors, drive interactions, drive signups, drive downloads, whatever it is. Scammers will find a way around what's out there because they're being paid to do something and they're being paid to do something.
“That's why it's one of the most fraudulent channels in the digital marketing space. I think there are about eight channels that we've seen, but we believe there are many more at this point. But in most cases, other than programmatic fraud, affiliate fraud is the second most common fraud vector, accounting for an average of 45%.”
Why fraud isn't always a dirty word
Lee-Ann explains: “We know there are scams when it comes to traffic, but it doesn’t necessarily mean affiliate scams I know It is said that they are being targeted by a group of fraudsters. So it's very important for all of you affiliate managers who are paying attention to this conversation to be aware that what we want to do is make you aware of the different types of fraud that exist in the affiliate industry. is important.
“This isn't just about affiliate programs. It's about making sure the partners you're working with are legitimate. We'll also talk about some frameworks and things you can put in place to do that. But at the same time. , it's also just setting the stage for understanding what fraud is, which is a big problem.”
Never ignore red flags.
After talking about the definition of fraud and the impact it has, and how creative they can be, LeeAnne asks what are the key red flags. What are the indicators of possible affiliate fraud that could alert an affiliate program manager that something is wrong?
Rich explains: “First of all, if you have an affiliate network, that's a red flag, because there's already something going on there. But the truth is, I always tell people, 'Follow the money.' What you want to be able to do to track fraud is always track your money. If you're starting to get credit card chargebacks, you're starting to see if it's lead generation. If someone comes back and says, “Hey, I called the leads that you sent me, and some of them said they didn't fill out the form,'' that's a problem. ”
If you would like to know more about the following, please ask.
- Definition of affiliate fraud.
- How to stay informed about emerging fraud trends.
- Prioritize fraud prevention to protect your brand and revenue.
Key segments of this podcast and where you can listen directly to them:
[13:00] Identify potential affiliate fraud.
[27:08] Setting up fraud alerts in your affiliate program.
[32:45] Practical tips to prevent fraud.
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