Monica Eaton-CardoneMonica Eaton-Cardone is an entrepreneur and business leader with expertise in technology systems and threat metrics, product development, e-commerce retention, risk relativity and agile process design. She has co-founded a number of successful companies—including Chargebacks911, eConsumerServices and Global Risk Technologies—and currently fulfills executive management roles within each organization. Eaton-Cardone has earned a reputation for developing effective and innovative business solutions, helping merchants and banks to achieve maximum sustainability while supporting consumers in resolving transaction issues in order to main greater balance. Eaton-Cardone's deep understanding of the digital transaction life cycle and unique value chain ecosphere, provides the company with unparalleled knowledge and skill set.

Affiliate Fraud Triggers You’re Ignoring …But Shouldn’t

Your website traffic is off the charts

Your conversion rate is awesome

You have tons of affiliates and publishers knocking at your door

Your bank account is getting rich

You are generating so many leads

You think your campaign is going well because…

It is time to celebrate…right?!

It is time to celebrate…right?!

WRONG!!!Believe it or not – each of those items can be a sign for AFFILIATE FRAUD

Before you know it…YOU’VE BEEN PUNKED!(scammed, defrauded, taken for a ride and tricked)

Affiliate fraud patterns are difficult to see…

Fraud Filters

• Fraud filters detect credit card fraud, but affiliate fraud is different

• Fraud filters aren’t equipped to detect affiliate fraud

• Adjusting fraud filter rules in an attempt to make them work for affiliate fraud will increase false positives

Repercussions of FraudObvious repercussions of fraud…• Chargebacks• Decreased rebills for subscription

products• Increased refunds• Decreased potential for good revenue

Unsuspected side effects…• Increased conversion rates• Efforts to increase profitability further damage

the customer relationship and yield greater long-term losses

Managing Affiliate Fraud Risks

Understanding Fraud

Affiliates Criminals Consumers

AdwareCookie-stuffingLoyalty pluginsTypo squatting

iFrame Post back URL

Discount CodesIncentives

Clean fraudAccount takeover New account fraudCredit card fraud

Friendly fraudFamily fraud

Accidental fraud

300% GROWTH

10% LATERAL GROWTH41% VERTICAL GROWTH

LARGEST SOURCE OF ADVERTISER FRAUD

3 Sources, behind the scenes growth-rates

Review online traffic8% growth in traffic is suspicious for non-coupon sites

Speak to your customers

Survey for Incentive Traffic

Offer profilingdemographic comparison analysis

Blacklist fraudulent websites…but don’t relax.

Manage your conversionGeo-location, device intelligence, online behavior patterns, comparative trending analysis

Use A/B Scoring< A vs. B >

A is the control & B is the test

Comparative Analysis = KPIsDefine and Measure your KPIs

Quick call rates

Abandonment rates

Conversion rates – click through rates

Decline ratios

Demographic(who is your typical customer….have they changed?)

Refund rates

Google alert activity

Best Practices (for mitigating fraud)Regardless of the type of fraud, all mitigation strategies must include the following:

• A multi-layer approach• Dynamic, evolving techniques• Professional tools• A genuine understanding of the actual fraud sources• A/B testing to establish KPIs• Use experts (mistakes are very expensive)• Continuous measurement, inspection, learning

AND…Explore New Innovative ToolsBased on our own experience as advertisers…

• Traditional fraud filters are equipped to handle credit card fraud—not affiliate fraud.• Adjusting fraud filter rules in an attempt to detect affiliate fraud results in increased false positives by

as much as 72%.

Therefore…advertisers need a complimentary tool that’s designed specifically for affiliate fraud. • Detect fraud to reduce costs and optimize profitability • Qualify a company that has had experience as a merchant• Machine learning and Human Review solutions are 235% more successful than automation alone