Affiliate marketing is a $17 billion industry, but 17% of all affiliate clicks are fraudulent, leading to billions in wasted ad spend. Fraudsters manipulate conversions through bot-driven clicks, stolen transaction data, and unauthorized traffic rerouting, impacting brand trust and marketing ROI.
Recognizing affiliate fraud is essential to protecting your business. Warning signs include unusual in-app activity where bots mimic real users, suspiciously high performance with unrealistic conversion rates, and a mismatch between traffic and purchases—many clicks but no actual sales. Additionally, unresponsive leads and affiliates that always meet campaign goals, regardless of changing objectives, are red flags.
To prevent fraud, brands should manually vet affiliates instead of auto-approving them. Implementing strict brand safety guidelines and fostering direct affiliate relationships ensures transparency. AI-powered monitoring tools can detect fraudulent patterns in real-time, and regular performance audits help uncover inconsistencies before they cause financial damage.
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