• http://www.experienceadvertising.com Affiliate Management

    Affiliate networks have never made much of an effort to prevent fraud, detect it, or report it to their advertisers. Fraudulent sales get paid out on all the time by unsuspecting advertisers. It starts when affiliates are let into the network, if the network isn’t screening them, the advertiser may not either, and fraud can result, especially in the lead generation industry. Networks have made tons of money on fraudulent leads and sales that advertisers haven’t detected until after the locking period, then it’s too late to get that money back. If the networks would truly detect fraud, like they should, and notify advertisers before they pay out, it might stop. If the advertiser doesn’t have a great process in place to detect fraud, they can easily and do get burned. Let alone the “incentive” affiliates and social currency derived sales and leads, don’t get me started on that.

  • Pat Grady

    I concur. And the power of (network) aggregated policing is large, but mostly going unused. A real shame.

  • Michelle McKinley

    As a lead gen company and a network we deal with fraud often. At Round Sky Inc we do lead generation. We take fraud seriously, so we screen all publishers who apply to the network and use fraud detection. Fraud still comes through from outside networks, so we set up a fraud alert. Any time a network sends 21% or more of leads with a fraud score we notify the network, and pull the publisher. That’s for in house offers, for outside offers we only put on pubs who have never sent fraud. Still we had a pub recently switch practices without letting us know. It can be hard to control publishers, but we notify them of the issue and pull them off an offer when we see the fraud.