Last week we brought in 2 guest speakers to speak to our community of networks about preventing affiliate fraud. Working for Kount, Zach Pitts and Don Bush helped ClickBank prevent $45,950,024.91 in attempted affiliate fraud last year. Learn how they did it and what you can do to bring affiliate fraud at your network or affiliate program down to 0.
First Things First, Affiliate Fraud Is On The Rise
1. Eleven percent of CPA conversions are fake
I was shocked to hear this stat. On average, 11.4% of all conversions tracked by affiliate networks are fraudulent. Now, I know this this stat varies greatly from network to network but either way, the only acceptable percentage of fraud is 0%-1%.
2. Fraudulent affiliates are smart and relentless
Fraudulent affiliates aren't just small scale basement operations anymore. They have evolved into highly organized operations with aspirations to make big money at your expense. Fraudsters are constantly evolving their bag of tricks when it comes to generating fake leads and sales.
3. They know how to get accounts on your network
They also create new ways every day to get accounts at your network including hiring actors to create accounts for them and collaborating with legitimate affiliates to run small amounts of fraud on their accounts.
4. Your LEGIT accounts aren't safe
Fraudsters are propositioning your LEGIT affiliates to run small bits of fraudulent traffic on their accounts. They claim the conversions will look like "test conversions" and won't get noticed by the network. Fraudsters do this over hundreds of accounts across many networks and collect thousands in bogus commissions.
How Did Kount Prevent $45 Million In Fraud For ClickBank?
Kount is a powerful anti fraud platform. They create a wall of protection between you and fake conversions. Here's how they do it.
1. Kount has information on over 3 million affiliates
Kount has profiled over 3 million affiliates and has access to data points on them including credit card and bank account numbers. If an affiliate has committed fraud in the past and tries to sign up to your network, Kount will know about it.
2. Kount can easily recognize fake leads
If fraudsters hire people to fill out fake leads, Kount will detect it. Kount recognizes the digital fingers prints of computers and browsers and can easily see through even the most advanced proxies.
3. Kount can detect fraudulent credit cards
Running continuity offers? Continuity is a favorite target for fraud. They get a free trial with a stolen credit card, you pay them their commissions and by the time the advertiser rebills, the credit card is dead and you're stuck with the bill. Kount can't recognize stolen cards and prevent fraudsters from pulling a fast one.
What Difference Does Kount Make?
1. Advertisers will love you
If advertisers see that your network is protected by Kount they will be more willing to do business with you. This also opens up the opportunity to negotiate better deals.
2. Your bottom line will grow
Kount eliminates all the leaks in your cash flow by ensuring that you never pay out for bad conversions.
3. You'll spend more time on building your business and less worrying about fraud
Monitoring fraud can be exhausting. Kount's system is so robust your entire anti fraud operation can be run by a single person with minimal maintenance. Spend this valuable extra time building your business, not worrying about fraud!
Does Kount Cost $45 Million A Year?!?!
Of course not! Kount may have saved ClickBank from a $45 million dollar hit but their service is no where near that expensive. The Kount promise is to help you save and earn more with their service than without.