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How To Prevent Affiliate Fraud

Posted November 30, 2017 by in Blog

Online Fraud is a reality, as we all know about frauds which have been now increased day by day and if we do not learn how to prevent it soon it could be the most dangerous thing in Online Fraud Activities.

To stop fraud we first have to be very effective and we must have to learn that how online fraud activities can be stopped and how we can detect and fight against it or it can ruin many businesses.

As we all know about the Affiliate Marketing and the way now affiliate marketing face is now changed due to 60% of fraudulent activities by the fraudsters, In 2015 the statistics were totally different as Affiliate Fraud was ranked 3rd in top 10 perceived fraud threats, since 2012-2015 it has jumped up from 5th rank to 3rd rank in fraud activity, In all 300% was the Identity Theft Fraud.

From the researches the Paid Web traffic from 100% is not pure and clean traffic, from that 18-20% of traffic is totally fraudulent, where from the numbers for Mobile Fraud is more than 40-50% as it is a very high risk for the Mobile traffic.

There are more other ways to do fraud as Fraudsters are very much smart that how they can make everything perfect by their fraud activities, but as per the reports of Click Forensics the ratio of Clicks Fraud is almost more than 30% and the ratio for it is way too high.

There are many other ways that fraudulent can do fraud and from that some I will explain you in detail, and you can also be careful if you find these activities in your Affiliate you can be aware to make things go under control.

1) Session Time:- Time between a click and a conversion from this you can check actual installs are genuine or bot.
If you want to promote an app you will click and then you will make it install and the time between that should not be abnormal i.e.
If you have 400MB app after clicking on that App it at least takes 15-20 normal minutes to download it successfully, but after clicking on App if it shows downloads in seconds or in few minutes that is called bot or fraud traffic.

2) Clicks: – There are many methods to make Clicks Fraud, many Affiliate Networks have software that allows only genuine clicks like 4000 clicks and 50 installs.

Above you can see clicks are 4000 but when the software for fraud activities checks the clicks where the actual normal clicks will be 700-800.
Now there is a huge difference between 4000 clicks to 700-800 clicks, so from where other clicks occurred?
That clicks are forcefully done clicks or bot clicks as well, which shows in your system as pure clicks if you do not have software to track actual normal clicks, where the same user clicks 500 times and installs just once and they do provide that 500 clicks misplacing direct servers.

3) Retention Fraud:- Fraudsters are very good in the matter of delivering fake Retention Rates to the campaigns, If you will ask them for 60% Retention Rate till 7th day they will give you your expected Retained users till that day, and there are many more things that fraudsters can apply as some points are below.

1) They can achieve Retentions from YouTube in less than 30 seconds for overall campaign and they will actually achieve that which the campaign conversions are going to end, so at the end time where they got the retention.

2) They can also give you your expected Retentions from Facebook in less than a minute in the same way they provide from YouTube.

3) They can show you pure numbers of Registrations in your campaigns but in the matter of fact that all Registrations will be fraud.

4) They will show you In-App behavior to attract you towards their traffic and also they will show you In-App purchases but those are also fraud.

Now these are the things which basically fraudsters do apply to earn huge amount of commission but there are some ways you can verify if the Retentions are fraud or not.
While checking your Attribution Retention Report you can take reports for many days and you can take report and can check for 7 days which will show you the clear results for Retentions.

If 1st Day RR is 40%
2nd Day RR is 40%
3rd Day RR is 30%
4th Day RR is 20%

Then from the 5th Day if you see a sudden dropdown in Retentions to 0% it is clearly stated as Fraud Retentions.

If the user at 4th Day has retained 20% could it be possible a sudden drop down to 0% that clearly indicates and proves that it is fraud Retentions where I will show you some Reports to similar things that you can check.

And finally here are some points you can verify Affiliate Fraud and that should be the very first point you have to check.

1) First check the IP Address of your Affiliate while they signup, it might be proxy IP and to check that there are many you can look up for that in Google.

2) You can restrict the IP’s where you do not want any Affiliate to join your network you can approve limited countries by your end so the fraudsters will not be able to sign up on your platform.

3) When they sign up on your platform you can ask for an SMS Validation so you can easily come to know the place that from where the Affiliate actually exists.

4) You can check the profile when the Affiliates signup and you can check what is the fraud probability ratio is for the Affiliate, and you can also check there whether the Affiliate works with you he does not create the second account in order to earn more commission it can be a Fraud activity as well.

I hope from all these above things you can prevent your organization from Fraud.

Hope this article is helpful to you.

Tags: Affiliate fraud / Affiliate manager / Affiliate marketing / Cpi fraud / fraud / How to prevent affiliate fraud