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Home / The Financial Advisor / Fraudulent Publishers and Affiliates Causing Networks to Lose Money

Affiliate Fraud: Affiliate Marketing Networks Lose Money to Fraudsters

Where there’s money to be made, the unscrupulous will flock. That certainly seems to be the case when it comes to click through advertisements which continue to grow more lucrative by the day. Illegal activity that occurs by means of click through advertisements is widely known as click fraud. Click fraud occurs when someone exploits banner ads or paid text links by clicking on them in order to drive up the amount of payable clicks. This in turn hurts the advertisers’ budgets since they are the ones paying for the real estate of the site on which they are advertising.

Studies have shown that the use of click fraud is driven by two main factors. The first is due to individuals who use click fraud on their own personal sites in an attempt to maximize their payout.  The other group of perpetrators is that of companies who use click fraud as a means of draining their competitions’ advertising budgets. Fraudulent clicking is most frequently executed via automated software or an online bot that is programmed to click on the click through ads. There are also many cases in which people will manually click on the banners or pay per click ads.

In order to combat click fraud, it pays to have software that can minimize or completely nullify the activity of advertising networks paying these suspected fraudsters. Tipalti’s Risk Management Module (RMM) helps networks avoid repeat fraud by alerting them when a previously detected fraudster attempts to sign up for payments under an alternative identity.  It essentially acts as a watch dog and, while a fraudulent clicker may put on a new disguise, the watch dog never forgets the violator’s scent, which means that he’ll never get past undetected. If a network chooses to opt in, Tipalti’s RMM can also alert them if a swindler, previously detected by a different advertising network or affiliate network, tries to sign up.

About the Author

Rob Israch

Rob Israch leads global marketing for Tipalti and runs their Europe business, bringing over 20 years of leadership experience to the company. During the 7+ years that Rob has served at the company, Tipalti has experienced 50X+ growth while helping the company receive a valuation of over $8.3 billion and becoming one of the select few companies in America to have made both the Deloitte Fast 500 and Inc 5000 lists for the last four years running.
Prior to Tipalti, Rob served as VP, Global Marketing Programs at NetSuite, the leading provider of cloud-based Enterprise Resource Planning (ERP) software, helping to guide the company through 10X+ revenue growth, from a private company through IPO to cloud ERP market leader. Previously, Rob held a variety of executive roles at Intuit QuickBooks and GE Capital.


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