Why Investing in Affiliate Fraud Detection is Critical

October 4, 2024

Affiliate Manager Training, Featured Story, News, Supplier, Trending, Videos

This month Lee-Ann sat down with Rich Kahn, founder of Anura.io for an insightful webinar discussing the critical importance of investing in affiliate fraud detection.

How Fraud is Impacting the Affiliate Industry

During this discussion they covered the evolution of affiliate marketing and the ways that affiliate fraud impacts not only profit but operations with a knock on effect to profit margins. They also discussed the preventative measures affiliate managers should be implementing as well as how fraud detection technology can help you combat it.

Rich shared his insights from his extensive experience in the field, emphasising the need for affiliate managers to be proactive in identifying and mitigating potential incoming fraud traffic to protect their budgets and ensure sustainable business growth as he directed the audience to – “Think of fraud detection as a profit centre and not a cost”

With an estimate of roughly 40% of the traffic being received by advertisers being produced by human fraud farms or bots or malicious intent it’s a constant battle that Advertiser must be vigilant on. The conversation started with Rich detailing that the bigger you are the easier it is to be targeted so brands that are spending higher volumes on direct advertising are the one’s that are being most commonly targeted.

The stats speak for themselves – having proper fraud compliance policies in place in your program is more of a preventative measure than a cure, as Lee-Ann detailed some of the key things they do to help protect their client programs with stronger affiliate vetting processes and constant monitoring.

Here are some of the key points they spoke about and shared in this webinar with the outline of the conversation being summarised below.

Takeaways

Investing in affiliate fraud detection is crucial for business success.
Fraud can cost businesses billions, making it essential to address.
The larger a business grows, the more it becomes a target for fraud.
Understanding the specific types of fraud affecting your business is vital.
Affiliate managers must be vigilant and proactive in fraud detection.
Real-world impacts of fraud can extend beyond immediate financial losses.
Technology plays a key role in identifying and preventing fraud.
Affiliate managers should view fraud as a profit center, not just a cost.
Continuous testing and monitoring of affiliates is necessary to mitigate fraud.
Building strong relationships with affiliates can help in fraud prevention.

Key Chapters

00:00 – Introduction to Affiliate Fraud Detection

10:19 – The Importance of Understanding Affiliate Fraud

17:11 – Identifying and Measuring Fraud

23:11 – Real-World Impacts of Fraud

30:09 – The Role of Technology in Fraud Prevention

38:09 – Evolving Strategies Against Fraud

Conclusion – Get a Free Trial of Anura and test your own fraud levels today!

Affiliate managers face many challenges as they scale their affiliate programs looking for new sources of traffic, but one thing is clear – you have to take precaution and vet where traffic is coming to you from and assume more than 40% of it may not be legitimate. As custodians of your business budget you have a responsibility to spend your budget wisely maximising the profit margins where possible by stamping out potential fraud.

Fraud detection tools like Anura.io can help you empower the process of scaling your program without increasing your vulnerability to potential affiliate fraud. With the tips and tactics Rich has shared in this webinar we hope that it will help you to manage this better and improve your profit margins within your program by being aware of what might be taking place earlier.

If you’re managing an affiliate program and looking to overcome these common challenges, consider exploring how Anura can streamline your fraud detection and improve your program performance.

Access a free trial of Anura.io to test your traffic and determine how much potential fraud you’re getting!

Watch the whole conversation – here

Need help scaling your Affiliate program?

If you need help scaling your affiliate program – get in touch with our experienced agency team and we can help you build the processes that can help prevent fraud in your affiliate program and help your program to grow! Contact us to get help and advice on scaling your program and finding the right affiliates to partner with.

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