10 Affiliate Marketing Scams: Explanation, Types, Prevention Tips, and Reporting

fraudswatch May 26, 2023

0 7 13 minutes read

Affiliate marketing is a popular and legitimate way for individuals and businesses to earn money online. However, scammers have also exploited the lucrative nature of this industry, leading to various affiliate marketing scams. In this article, we will discuss 10 common affiliate marketing scams, how to identify and prevent them, and how to report these scams.

1. Introduction

Affiliate marketing involves promoting products or services for a merchant and earning a commission based on the sales or leads generated. While many legitimate opportunities exist, scammers have created schemes to take advantage of unsuspecting affiliates and merchants. By being aware of these scams, you can protect yourself and your business.

2. 10 Common Affiliate Marketing Scams

2.1 Fake Affiliate Networks

Some scammers create fake affiliate networks to lure affiliates by promising high commissions and payouts. Affiliates sign up and promote products, but they never receive their commissions.

Fake affiliate networks are fraudulent schemes designed to deceive affiliates into promoting products or services that either don’t exist or are of low quality. The goal of these networks is to make money by exploiting the commissions paid to affiliates for driving traffic or sales to a merchant’s website.

One common tactic used by fake affiliate networks is to create a website that looks legitimate but is actually a front for a scam. They may use fake testimonials, fake product reviews, and other tactics to make it seem like they are a reputable affiliate network. They may also promise high commissions or other incentives to entice affiliates to join.

Once an affiliate signs up, they may be given links to promote products or services that are not real or are of poor quality. Alternatively, they may be directed to a landing page that looks like a legitimate merchant’s website, but is actually a fake site designed to collect personal information or credit card details from unsuspecting visitors.

To avoid falling victim to a fake affiliate network, it’s important to do your due diligence before signing up. Research the network and the merchants it works with, read reviews from other affiliates, and be wary of any promises that seem too good to be true. Always remember that if something seems too good to be true, it probably is.

2.2 Cookie Stuffing

Cookie stuffing involves placing an affiliate’s tracking cookie onto a user’s device without their consent. This allows the scammer to earn commissions from purchases made by the user, even if they never clicked on the affiliate’s link.

Cookie stuffing is a black hat technique used in affiliate marketing to fraudulently generate commissions from affiliate programs. It involves forcing a website visitor’s browser to download an affiliate tracking cookie without their knowledge or consent, so that if they later make a purchase on the merchant’s site, the affiliate who stuffed the cookie will receive a commission for the sale.

There are different methods used to stuff cookies, but one common tactic is to use hidden images or iframes that load tracking cookies from the affiliate network without the user’s knowledge. For example, a website owner might place hidden tracking pixels on their website that trigger a cookie to be set when a user visits the site, even if they don’t click on an affiliate link or make a purchase.

Cookie stuffing is considered fraudulent because it violates the terms of service of most affiliate programs and can result in the affiliate account being terminated, as well as legal consequences in some cases. It also harms the merchant, who ends up paying commissions for sales that were not legitimately generated by the affiliate.

To avoid being a victim of cookie stuffing, it’s important to use reputable affiliate networks and to be wary of any affiliate links or promotions that seem suspicious or too good to be true. Website owners should also regularly monitor their site for any unauthorized tracking pixels or third-party scripts that could be used for cookie stuffing.

2.3 Adware and Spyware

Some affiliates use adware and spyware to inject their affiliate links into the user’s browsing experience, hijacking legitimate affiliate traffic and earning undeserved commissions.

Adware and spyware are two types of malicious software that are designed to harm computer users in different ways.

Adware is a type of software that is designed to display unwanted advertisements to the user. It is often bundled with other software that the user downloads, and once installed on the user’s computer, it displays pop-ups, banner ads, or other types of ads as the user browses the web. Adware can be used to generate revenue for the developer by displaying ads, but it can also slow down the user’s computer and compromise their privacy by collecting data about their browsing habits.

Spyware, on the other hand, is a type of software that is designed to secretly collect information about the user’s computer and online activity. It can be used to track keystrokes, capture passwords, and record browsing history, among other things. Spyware can be installed on a user’s computer without their knowledge or consent, and it can be used for a variety of nefarious purposes, such as identity theft, fraud, or corporate espionage.

Both adware and spyware can be difficult to detect and remove, and they can cause significant harm to the user’s computer and privacy. To protect against these threats, it’s important to use reputable anti-virus software and to be cautious when downloading and installing software from the internet. Users should also be wary of pop-ups and other types of ads, and avoid clicking on suspicious links or downloading unknown files.

2.4 Offer Hijacking

In this scam, scammers copy a legitimate affiliate offer and promote it as their own, stealing traffic and commissions from the original affiliate.

Offer hijacking is a fraudulent practice that occurs in affiliate marketing when someone intercepts a user’s click on an affiliate link and replaces the original affiliate ID with their own, in order to receive the commission for any resulting sales.

For example, suppose an affiliate marketer creates a link to a product on a merchant’s website with their unique affiliate ID embedded in the link. When a user clicks on the link and makes a purchase, the merchant pays a commission to the affiliate. However, if someone intercepts the user’s click and replaces the original affiliate ID with their own, they will receive the commission instead of the original affiliate.

Offer hijacking can occur through a variety of methods, such as through the use of browser extensions, malware, or other types of software that intercept and modify links. It can also be done through social engineering tactics, such as by tricking users into clicking on a fake link or by exploiting vulnerabilities in the merchant’s website.

Offer hijacking is considered a serious offense in the affiliate marketing industry, and it can result in the termination of the hijacker’s affiliate account, as well as legal consequences in some cases. To avoid being a victim of offer hijacking, it’s important to use reputable affiliate networks and to be cautious when clicking on links from unknown sources. Affiliates should also monitor their traffic and sales closely to detect any suspicious activity and report it to the affiliate network or merchant immediately.

2.5 Fake Reviews

Scammers post fake positive reviews for a product or service to deceive users and boost their affiliate earnings.

Fake reviews are reviews that are created for the purpose of deceiving others, rather than providing an honest evaluation of a product or service. They can be created by individuals, companies, or bots, and can be found on a variety of online platforms, including e-commerce websites, social media, and review sites.

Fake reviews can be positive or negative, and they can be used to manipulate the reputation of a product or service, influence purchasing decisions, or damage the reputation of competitors. They can be particularly damaging to small businesses or startups, which may rely on positive reviews to attract customers.

There are several ways that fake reviews can be identified, including:

Suspicious language or tone: Fake reviews may use overly positive or negative language, or may sound like they were written by someone who has never used the product or service in question.
Lack of detail: Fake reviews may be short and lacking in detail, or may focus on aspects of the product or service that are not relevant to most users.
Multiple reviews from the same IP address: If multiple reviews are posted from the same IP address, it may indicate that they were created by the same person or bot.
Sudden spike in reviews: If there is a sudden increase in the number of reviews for a product or service, it may indicate that fake reviews have been posted.
Unverified purchases: If the reviewer has not verified that they have actually purchased the product or service, it may indicate that the review is fake.

To avoidbeing deceived by fake reviews, it’s important to be sceptical and look for signs that the review may not be legitimate. It’s also a good idea to check multiple sources for reviews, and to look for reviews from trusted sources, such as friends or family members, or from reputable review sites. Additionally, if you suspect that a review may be fake, you can report it to the platform on which it was posted, so that they can investigate and remove it if necessary.

2.6 Typosquatting

Typosquatting involves registering domain names similar to popular websites, hoping to capture traffic from users who mistype the original URL. Scammers then display affiliate offers on these sites.

Typosquatting is a type of cybersquatting that involves registering domain names that are similar to popular website addresses, but with slight variations or misspellings. The goal of typosquatting is to capitalize on the traffic that is intended for the legitimate website, and to redirect that traffic to a different website for the purpose of generating revenue or stealing information.

For example, a typosquatter might register a domain name such as “goggle.com” or “facebok.com” that is intended to mimic the domain names of popular search engines or social media websites. They might then use this domain to display ads, sell products, or collect personal information from unsuspecting visitors.

Typosquatting can be difficult to detect, as the fake domain names can be very similar to the legitimate ones. However, there are several ways to protect against typosquatting, including:

Double-checking the URL: When visiting a website, make sure to double-check the URL to ensure that it is spelled correctly and that it is the legitimate domain name.
Using a reputable search engine: Use a reputable search engine to find the website you are looking for, rather than typing the URL directly into the address bar.
Installing anti-virus software: Install anti-virus software on your computer to help detect and block malicious websites.
Reporting typosquatting: If you come across a typosquatting website, report it to the appropriate authorities or to the legitimate website owners so that they can take action to have it taken down.

In addition to being a security risk, typosquatting can also be a trademark infringement, as it involves using a name that is similar to a well-known brand. Companies can protect themselves against typosquatting by registering variations of their domain names and trademarks, and by monitoring the internet for any unauthorized use of their intellectual property.

2.7 Shady Merchant Practices

Some merchants use tactics like not tracking sales accurately, changing commission rates without notice, or closing their affiliate program without paying affiliates.

Shady merchant practices refer to unethical or fraudulent practices employed by businesses to deceive or exploit their customers. These practices can take many forms and can have serious consequences for consumers, including financial harm, identity theft, and damage to their credit score.

Some common examples of shady merchant practices include:

Hidden Fees: Merchants may add hidden fees or charges to products or services, making it difficult for consumers to understand the true cost of their purchase.
False Advertising: Merchants may misrepresent their products or services in advertising, making exaggerated or false claims about their quality, features, or benefits.
Deceptive Sales Tactics: Merchants may use high-pressure or misleading sales tactics to convince customers to make a purchase, such as offering limited-time deals or making false promises about future availability.
Refund Scams: Merchants may refuse to honor refunds or returns, or may make it difficult for customers to obtain a refund by imposing unreasonable conditions or restrictions.
Data Breaches: Merchants may fail to adequately protect their customers’ personal or financial information, leading to data breaches and identity theft.

To protect against shady merchant practices, it’s important for consumers to do their research before making a purchase. This includes reading reviews, checking for hidden fees or charges, and verifying the legitimacy of the merchant. Consumers should also be wary of deals that seem too good to be true, and should take steps to protect their personal and financial information, such as using strong passwords and monitoring their credit reports regularly. If aconsumer suspects that they have been a victim of shady merchant practices, they should report it to the appropriate authorities and take steps to protect themselves, such as cancelling credit cards or freezing credit reports.

2.8 Affiliate Link Hijacking

Scammers replace genuine affiliate links with their own, redirecting commissions to themselves.

Affiliate link hijacking is a type of online fraud that occurs when someone replaces an affiliate’s tracking code or ID with their own, in order to steal commissions from the legitimate affiliate. This can happen in a number of ways, including through the use of browser extensions, malware, or other types of software that intercept and modify links.

Affiliate link hijacking can be particularly damaging to affiliates, as it can result in lost commissions and damage to their reputation. It can also harm merchants, who may end up paying commissions to the wrong affiliate, as well as consumers, who may be directed to fraudulent or low-quality products.

To protect against affiliate link hijacking, it’s important for affiliates to use reputable affiliate networks and to be cautious when clicking on links from unknown sources. They should also monitor their traffic and sales closely to detect any suspicious activity and report it to the affiliate network or merchant immediately. Additionally, affiliates can take steps to secure their links, such as by using link cloaking or by encrypting their links to prevent them from being intercepted and modified.

2.9 Fake Training Programs

These scams involve selling high-priced training programs that promise to teach affiliates how to make huge profits, but the content is often outdated or ineffective.

Fake training programs are fraudulent schemes that promise to provide training or education to individuals in exchange for money, but fail to deliver on their promises. These programs can take many forms, including online courses, seminars, and mentorship programs.

Fake training programs typically use high-pressure sales tactics and make exaggerated claims about the benefits of their programs, such as promising quick and easy ways to make money or achieve success. They may also use fake testimonials or endorsements to make their programs seem more legitimate.

Once individuals sign up for the fake training program, they may be given low-quality or outdated materials, or may receive no materials at all. Alternatively, they may be directed to a website that is designed to collect personal information or credit card details from unsuspecting visitors.

To avoid falling victim to a fake training program, it’s important to do your research before signing up. Research the program and the individuals behind it, read reviews from other participants, and be wary of any promises that seem too good to be true. It’s also a good idea to check with reputable organizations or experts in the field to confirm the legitimacy of the program.

Remember that legitimate training programs typically require time, effort, and hard work to achieve results, and that there are no easy shortcuts to success. If something seems too good to be true, it probably is.

2.10 Commission Theft

In this scam, affiliates’ earnings are stolen by hackers who gain access to their affiliate accounts.

Commission theft is a type of online fraud that occurs when someone unlawfully diverts or steals commissions from an affiliate marketer or influencer. This can happen in a number of ways, including through the use of cookie stuffing, link hijacking, and other malicious tactics.

Commission theft can have serious consequences for affiliate marketers and influencers, as it can result in lost commissions and damage to their reputation. It can also harm merchants, who may end up paying commissions to the wrong affiliate, as well as consumers, who may be directed to fraudulent or low-quality products.

To protect against commission theft, it’s important for affiliates and influencers to use reputable affiliate networks and to be cautious when clicking on links from unknown sources. They should also monitor their traffic and sales closely to detect any suspicious activity and report it to the affiliate network or merchant immediately. Additionally, they can take steps to secure their links, such as by using link cloaking or by encrypting their links to prevent them from being intercepted and modified.

3. Prevention Tips

3.1 Research Affiliate Networks and Programs

Before joining an affiliate network or program, research its reputation and history. Look for reviews from other affiliates, and check for any reports of scams.

3.2 Monitor Your Traffic and Earnings

Regularly monitor your traffic and earnings to detect any suspicious activity or sudden drops, which could indicate a scam.

3.3 Use Reputable Security Software

Install reputable security software on your devices to protect against adware, spyware, and other malware.

3.4 Use Strong Passwords and Enable Two-Factor Authentication

Use strong, unique passwords for your affiliate accounts and enable two-factor authentication to protect against hackers.

3.5 Be Cautious with Your Affiliate Links

Avoid sharing your affiliate links on untrustworthy websites or with unknown individuals.

3.6 Educate Yourself

Stay informed about the latest affiliate marketing scams and best practices to protect yourself and your business.

4. Reporting Affiliate Marketing Scams

If you suspect you have encountered an affiliate marketing scam, report it to the relevant authorities:

Federal Trade Commission (FTC): The FTC investigates consumer complaints and takes action against deceptive business practices. File a complaint at ftccomplaintassistant.gov.
Better Business Bureau (BBB): The BBB helps resolve disputes between businesses and consumers. Report a scam at bbb.org/scamtracker.
Internet Crime Complaint Center (IC3): The IC3 is a partnership between the FBI, the National White Collar Crime Center, and the Bureau of Justice Assistance. Report a scam at ic3.gov.

5. Conclusion

Affiliate marketing can be a profitable venture, but it’s essential to be aware of scams and take steps to protect yourself. By following the prevention tips outlined in this article and reporting any suspicious activity, you can help combat affiliate marketing scams and maintain a successful affiliate marketing business.

10 Affiliate Marketing Scams: Explanation, Types, Prevention Tips, and Reporting

1. Introduction