The growth of affiliate marketing fraud has attracted shady actors looking to steal your brand’s hard-earned money. Here’s what you need to know about this pervasive problem in the performance marketing industry, as well as tips for avoiding it.

The most common type of affiliate fraud involves fake sales and transactions. This happens when an affiliate uses stolen credit card numbers or manipulates conversion tracking data to make it seem like they’re generating legitimate sales, resulting in a payout for the fraudster. This is a big problem in cost-per-acquisition (CPA) campaigns that require payment from the consumer before an affiliate receives a commission.

Protecting Your Profits: A Guide to Identifying and Preventing Affiliate Marketing Fraud

Another common form of fraud is cookie stuffing, which involves an affiliate placing third-party cookies on users’ devices without their consent or knowledge. This trick allows them to earn commissions on clicks, app installs and more — all while the user has no idea they’re being tracked. To avoid this, you should use a tool that keeps track of your affiliates’ behavior and monitors patterns in their activity.

Another way to spot affiliate fraud is by looking at your product’s refund rates and comparing billing and shipping information. If you notice a high number of returns, it could be an indication that an affiliate is engaging in fraud or that their leads aren’t quality. Finally, it’s important to have clear terms and conditions in place for your affiliates so you can hold them accountable and enforce your policies.