Affiliate fraud occurs when an affiliate misrepresents a product or service to drive sales or artificially inflates the number of sales or clicks to receive a commission. This can be a serious problem for merchants and can harm the reputation of the affiliate marketing industry as a whole. If you suspect that you have been a victim of affiliate fraud, here’s what you need to do.
Gather Evidence
The first step in reporting affiliate fraud is to gather evidence. This may include screenshots of the fraudulent activity, reports from your affiliate tracking software, or any correspondence with the affiliate in question. The more evidence you have, the stronger your case will be when you make a report.
You’ll want to gather evidence such as:
- Screenshots proving fraudulent activities
- Traffic reports with relevant affiliate tracking data and referring URLs
- Fraudster user data like IP addresses
- Internal and external communications
- Transaction or chargeback data (if applicable)
- Historic commission reports
- Relevant account activity logs (if applicable)
- Customer complaints related to fraud (if applicable)
Clearly label each piece of evidence as you’ll be sorting and sharing this data with others. This should be done the moment you realize fraud is occurring and you have the evidence. Without the evidence, your claim can be ignored or dismissed.
Contact the Merchant
The next step is to contact the merchant who is offering the product or service that was misrepresented. Provide them with the evidence you have gathered and explain the situation. The merchant may be able to take action against the fraudulent affiliate and help you recover any lost commissions.
The initial email should state all relevant facts including the who, why, what and where, and provide corresponding documentation. Your email to a merchant regarding affiliate fraud could look something like this:
Subject: Urgent: [Merchant Name] Suspected Affiliate Fraud
Dear [Merchant Name] Affiliate Manager,
I hope this email finds you well. My name is [Your Name], and I work with a [Company Name] to manage their affiliate partner program.
I am writing to bring to your attention some suspicious activity I’ve noticed in relation to our affiliate partnership. After careful review of my recent performance data, I have reason to believe there may be fraudulent activity occurring within the program.
Specifically, I’ve observed the following: 1. Unusual spike in click-through rates from [date] to [date] 2. Abnormally high conversion rates for [specific product/category] 3. Multiple transactions from the same IP address within a short timeframe I’ve attached screenshots and relevant data to this email for your reference.
I kindly request that you investigate this matter at your earliest convenience. If fraud is indeed occurring, it impacts the integrity of your program and needs to be addressed immediately.
Please let me know if you need any additional information from my end to assist with your investigation. I’m happy to provide any further details that might be helpful.
Thank you for your prompt attention to this matter. I look forward to hearing back from you soon.
Best regards,
[Your Name]
[Your Contact Information]
It’s reasonable to expect a response from this email within 1 – 2 business weeks. If no response comes or the response is unsatisfactory, you’ll need to go directly to the affiliate network.
Report to the Affiliate Network
If the merchant fails to respond, isn’t able to help, or if you don’t have a direct relationship with the merchant, you can report the fraud to the affiliate network. Most affiliate networks have a process for reporting fraud, and will take the necessary steps to investigate the matter.
Affiliate networks have a vested interest in stamping out fraud because you won’t return as a customer if your affiliate budget gets wasted on fake conversions. If you can provide evidence of affiliate fraud they can adjudicate the manner swiftly in your favor. In some cases, the affiliate network may be able to take action against the affiliate, such as terminating their account or withholding commissions.
Report to the FTC & IC3
If you have exhausted all other options and cannot reach a resolution, you need to report the fraud to both the Federal Trade Commission (FTC) and the Internet Crime Complaint Center (IC3). The FTC is the primary agency responsible for protecting consumers from fraudulent and deceptive practices, and they have the authority to take action against affiliates who engage in fraud. The IC3 is the main intake for internet-related crime for the FBI and have an extensive seven-step filing system.
Optionally, you can also report the fraud to your local law enforcement offices who will typically have a cyber-crime/fraud division. In most cases contacting the FTC and IC3 will yield better results but if you need a report filed contact the police.
Reporting affiliate fraud is an important step in protecting yourself and others from the harmful effects of fraudulent activity. By following these steps, you can help to put an end to affiliate fraud and ensure that the affiliate marketing industry remains a trustworthy and profitable opportunity for all involved.
