Help...What can you do to detect and counter affiliate fraud?

DougHughes · 10-08-2009, 04:59 PM

We recently launched some offers out to a couple of CPA networks. We have had many ups and downs with various networks over the past couple of years.

Affiliate fraud is a huge problem for us. We are implementing improved order verification but it is impossible to verify every order.

I would be incredibly grateful if anyone could tell me ways to detect, prevent, or mitigate affiliate fraud.

This is a huge problem that gets us in all kinds of trouble with chargebacks, refunds, lost orders etc...

dpowermedia · 10-08-2009, 05:27 PM

Doug, I wish there was an easy answer for this, but all advertisers deal with this. I know some Acai advertisers that have a stack of merchant accounts ready to go at all times, and they burn through them pretty quickly. By putting additional verification in place before a credit card is processed you can mitigate some of the fraud. But you will always have fraud that slips by, or people with buyer's remorse that will chargeback instead of calling for a refund.

There are merchant service providers out there who are a little more familiar with online and affiliate sales who are slightly more understanding. But as someone who's been on the advertising side, I feel your pain. Just communicate with your merchant provider as much as you can. If you have someone about to do a huge drop or bring on a massive traffic source, alert your merchant account rep, let them know that you expect to see a huge increase in sales, along with a comparable percentage of possible chargebacks.

DougHughes · 10-09-2009, 09:38 AM

Thanks Jacob, We're in that boat. A bunch of merchant accounts, and several new layers of verification. It's so tough though, there are definitely loads of shady affiliates. I suppose we are doing what we can right now.

10-08-2009, 04:59 PM	#1
DougHughes Sells stuff War Room Member Join Date: Mar 2009 Location: Beverly Hills by way of Moab - Strange I know Posts: 176 Thanks: 48 Thanked 66 Times in 42 Posts Social Networking	Help...What can you do to detect and counter affiliate fraud? We recently launched some offers out to a couple of CPA networks. We have had many ups and downs with various networks over the past couple of years. Affiliate fraud is a huge problem for us. We are implementing improved order verification but it is impossible to verify every order. I would be incredibly grateful if anyone could tell me ways to detect, prevent, or mitigate affiliate fraud. This is a huge problem that gets us in all kinds of trouble with chargebacks, refunds, lost orders etc...
	I write copy.

10-08-2009, 05:27 PM	#2
dpowermedia CPA/Affiliate Network Join Date: Feb 2009 Location: Boynton Beach, FL Posts: 64 Thanks: 0 Thanked 14 Times in 11 Posts Contact Info	Re: Help...What can you do to detect and counter affiliate fraud? Doug, I wish there was an easy answer for this, but all advertisers deal with this. I know some Acai advertisers that have a stack of merchant accounts ready to go at all times, and they burn through them pretty quickly. By putting additional verification in place before a credit card is processed you can mitigate some of the fraud. But you will always have fraud that slips by, or people with buyer's remorse that will chargeback instead of calling for a refund. There are merchant service providers out there who are a little more familiar with online and affiliate sales who are slightly more understanding. But as someone who's been on the advertising side, I feel your pain. Just communicate with your merchant provider as much as you can. If you have someone about to do a huge drop or bring on a massive traffic source, alert your merchant account rep, let them know that you expect to see a huge increase in sales, along with a comparable percentage of possible chargebacks.
	Jacob Bishop- LinkedIn Site: DPowerMedia.com Network: DPowerProfit.com The Network for Zip, Email, Short Submit Offers Est. 2005: Former Emailers turned PPC turned Network CommunicationGuidanceSupportPayments via Wire*

10-09-2009, 09:38 AM	#3
DougHughes Sells stuff War Room Member Join Date: Mar 2009 Location: Beverly Hills by way of Moab - Strange I know Posts: 176 Thanks: 48 Thanked 66 Times in 42 Posts Social Networking	Re: Help...What can you do to detect and counter affiliate fraud? Thanks Jacob, We're in that boat. A bunch of merchant accounts, and several new layers of verification. It's so tough though, there are definitely loads of shady affiliates. I suppose we are doing what we can right now.
	I write copy.