Affiliate programs may seem simple in concept, but a lot of behind-the-scenes work goes into making them function properly. After all, someone has to keep track of who sends a customer through the merchant’s website to make a purchase, complete a survey, sign up for a newsletter, or otherwise perform a predetermined action that will earn the affiliate a commission. That person is the affiliate manager, who must be vigilant in screening and approving applicants and monitoring program activity to detect and prevent fraudulent behavior.

The best guide to prevent affiliate fraud is a problem that costs businesses millions, as fraudulent affiliates claim commissions they did not earn through deceitful tactics like click stuffing and generating fake leads or purchases. Businesses can protect themselves from these losses by creating detailed Terms and Conditions that are carefully reviewed during the application process, developing clear channels for affiliates to report suspicious activities, and establishing a commitment to monitoring performance regularly.

Blocking Browser Emulation and Device Spoofing in Real-Time

Detecting affiliate fraud takes time, so establishing a system of five minutes of fraud detection work for every $100,000 in revenue can help ensure that any suspicious activity is caught quickly. These checks should look at everything from referring URLs to the length of time spent on sales pages to identify patterns that could indicate fraud.

One common type of fraud involves a “front” website that closely resembles the merchant’s brand. This site serves as a tangible representation of an affiliate’s business model and acts as a way to convince the merchant that they can deliver customers. For example, a front website may include a blog, reviews, or coupon sites that can direct visitors to your product. Some affiliates also share their own discount codes on these sites to increase their referral numbers, a practice that is both misleading and unethical.