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All about Affiliate and merchant fraud


Affiliate fraud is when an affiliate steals from a merchant program. Considered against the law, this type of deception when detected will undoubtedly result in the quick extermination of all future business interactions with the merchant program. As it is illegal an affiliate can end up in court having to defend him-self.

Aware of the dangers of possible fraud many sites have robots made to defraud pay-per-click programs. Many merchants today are taking a more active stand against fraud using for instance Commission Junction technology. This means most affiliates practicing fraud will be caught in the end.

One way for merchants to avoid being victims of affiliate fraud would be for them to employ tougher screening tactics when bringing in new affiliates. The once common method of automatic affiliate approval process is now being abandoned by many merchants. Instead affiliate applications are being manually approved in the hopes to create a more efficient affiliate environment for merchants and affiliates.

In the compliance Department at Commission Junction- affiliates solution provider- four people work full time now focusing on pay-per-lead fraud. Since the elimination of Cost per click programs- which were not reaching the expectations of advertisers- this has become an even more concentrated effort.

Fraud detection technologies are being continuously developed in the hopes of cutting down fraud in both cost-per-click and cost-per-lead programs. So that companies can measure performance, detect when fraud has occurred and be compensated for their losses.

Merchant fraud is when a merchant doesn't pay up what it owes to affiliates the commissions for the traffic it brought them. This sort of fraud usually occurs when a merchant site goes out of business. To avoid such bad luck as an affiliate one should do some background research on the affiliate program one wants to join and frequently check that your merchant site is still up and running.

If you fall victim to internet fraud all is not lost. Today one can turn to "The Internet Fraud Complaint Center" who works along with the FBI in trying to catch the criminals. These are the people you should immediately report to when you become aware of being duped. They provide an easy way to alert the appropriate authorities when violation occurs. The IFCC also develop statistical information which throws light onto latest fraud trends and patterns.

The fight against fraud is well under way and anyone contemplating committing such a crime should know that they will eventually be tracked and caught. The aggressive approach to cracking down on these internet crimes should discourage anyone considering running a fraudulent operation as it is simply not worth the so called profit to be made.


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