Affiliate Fraud: A Menace in Banking Sector

Time to protect your affiliate campaigns and catch hold fraudulent IP addresses

The digital market has given birth to a plethora of affiliates who’re found across markets and industries of today. Proliferation of internet and rise of digital mediums have injected a new life in the affiliate marketing space by making it far effective than any other marketing strategy. These affiliates have a well-established visitor base which provides partnership opportunities for brands to enter new markets and explore customer base, thus giving your brand a stronger online presence.

The most important aspect of engaging in affiliate campaign is that the outcome is completely performance based. The affiliates are paid a commission only when a desired action takes place thus these affiliates are motivated enough to drive the outcome (through any means) your brand is looking for. However, an increase in ad spend by companies have made affiliate marketing an attractive playground for fraudsters who’re eating away your budgets through affiliate fraud.

mFilterIt detected that 38% of the affiliate campaigns in the banking sector are affected by affiliate ad campaign fraud.

The How

Where there’s money, there’s fraud. And with fraud, honest merchants and marketers are losing revenue and are left with drained ad budgets whereas dishonest affiliates are sending nothing but fake traffic your way, that’s affiliate fraud.

After analyzing a million of data sets in the banking sector in affiliate campaign, it was observed that there has been an increase in website traffic and leads however the sales remained as is. Why?

Dishonest affiliates had been sending traffic from bots, automated scripts and malware which means that the spike in website traffic was not because of a real user but bots messing up the numbers while your affiliates earns for every lead/click/install.

Not just that, it was also seen that fraudulent traffic was generated by a common IP address.

At mFilterIt, we have internalized certain criteria to evaluate the legitimacy of an IP address and determine if it’s safe or compromised. We undertake live IP blocklisting to weed out fraudsters to prevent affiliate fraud in your campaigns and red flag the anomalies to safeguard your spends.

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