With affiliate marketing there is potential to create endless opportunities for affiliates, consumers and merchants. Online fraud is a reality since there is money involved. It’s very difficult to avoid completely from it except you are not doing online business anymore. However, you must educate yourself, learn how to prevent, detect and fight fraud on your own effectively.

ACE Affiliates recently has published an infographic (enlarge version) on affiliate fraud. They pointed out that there are 6 types of general affiliate fraud:

  1. duplicating – creation of deceptive clones of legitimate sites
  2. spamming – sending mass emails under the guise of a legitimate brand
  3. squatting – creating sites under common misspellings of legitimate domains
  4. diverting – creating deceptive links that do not pay the intended affiliate
  5. faking – creating the illusion of many clicks on an affiliate link to drive up earnings on a CPC program
  6. stealing – making purchases with a stolen credit cards to earn bogus commissions or drain a merchant’s coffers

ACE Affiliates suggested 6 solutions for combat affiliate fraud:

  1. forums – join a forum that shares info on frauders.
  2. communicate – talk with affiliates about their business and tactics
  3. blacklists – maintain your own lists of frauders
  4. track – use cookies that identity fraud by tracking IPs
  5. checking – thoroughly check affiliate’s sites

As a webmaster and affiliate, do you have any suggestion for affiliate program managers to prevent affiliate fraud?

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