Affiliate fraud  is a serious problem in the online advertising industry. It’s estimated that advertisers lose as much as $100 billion to fraud annually.

The good news is that affiliate fraud can be prevented with the right tools and services. However, it’s important to be aware of the various forms affiliate fraud takes so you can identify potential scammers before they start causing damage to your business.

Identifying and solving fraud quickly is key to protecting your brand from damage and driving ROI. There are a few effective methods for preventing fraud, including:

The Dark Side of Affiliate Marketing: Understanding and Preventing Affiliate Fraud

A great way to identify affiliate fraud is by keeping tabs on your traffic quality. Make sure your system allows you to log each affiliate ID and get an accurate view of the users they bring to your site.

Keep an eye out for any affiliate with disproportionately high conversion rates. This is a red flag that they’re using spammy tactics to drive sales and leads.

Another warning sign is if you notice that an affiliate has been sending you traffic from a shady IP address. This could be a sign that they’re running a click farm, a fraudulent traffic source that sends fake bot traffic to your site.

Fraudulent affiliates often use cookie stuffing tactics to steal your commissions. They drop malicious cookies on your website’s visitors’ browsers from an unrelated site without their knowledge.

This is one of the easiest and most common forms of affiliate fraud, but it can also be devastating to your business. It can cost you money and generate a lot of fake clicks, leads, and sales that won’t benefit your business.