23 JanAvoid Costly Affiliate Fraud With These Tips

Affiliate fraud has been on the increase over the last couple of years unfortunately; another good reason to regularly screen your affiliate base.

The main types of fraud:

Malware and stealware: Some affiliates have developed software that is installed on a users machine, usually as part of a freebie download. When a person clicks on an affiliate link, the true affiliate’s id is replaced with the fraudster’s. If the malware application is widely used, this can result in genuine affiliates losing interest in your program. Be sure to mention that malware and stealware is not tolerated in your terms as this will also help to reassure genuine affiliates.

If you see a particular affiliate generating a large number of sales from various sites that aren’t listed in their profile, this may be the result of malware. Learn more about stealware – it really is a major problem.

Fake purchases: If you have a high value product that returns large commissions to affiliates, you may find some unscrupulous parties signing up for your program, then using stolen credit card information to purchase products via their affiliate links. 

To combat this, ensure that payment of commissions occurs well after the sale, but not so long that other affiliates are discouraged from signing up – 30 days (aka NET 30) after the end of the month in which a sale is made is sufficient and pretty much industry standard. If you offer a refund period on your goods and services, then the commission pending period should at least equal that.