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Affiliate’s Fraud Detection & Prevention

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This presentation is from Affiliate Summit West 2017 (January 15-17, 2017 in Las Vegas, Nevada). Session description: Do you see Spike in your affiliate’s monthly invoices ? Are you loosing traffic from your cart or checkout page ? Do you see round tripping in your traffic ? Learn how to combat theft from us ?

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Affiliate’s Fraud Detection & Prevention

  1. 1. Place your screenshot here Affiliate’sFraudDetection& Prevention
  2. 2. Hello! I am Gaurav Sethi What I believe StayCleanorStayAway You can find me at: gaurav@viruspositive.com @viruspositive
  3. 3. Agenda 1. Why to Care & What it is ? 2. Industry Movements 3. Research Analysis with Case Study 4. Common Mistakes 5. Best Pratices
  4. 4. AffiliateMarketing&Frauds Some Facts & Known Types of Affiliate Fraud’s
  5. 5. ✖ Affiliate Marketing Industry to Grow to $6.8bn over Next 5 Years ✖ Approximately 15% of all digital media industry’s revenue comes from affiliate marketing ✖ U.S. affiliate marketing spend nears $5B. That is twice the economy of Belize. ✖ In most affiliate programs less than 10% of affiliates drive 90% of traffic and conversions . QuickGlimpse W.F.Ahasdescribedadfraudashavingthepotentialtobecomethesecond mostprofitableformoforganised crimeintheworldwithinthenext decade, cominginsecondonlytococaineandopiatetrafficking.
  6. 6. Redefining AffiliateMARKETINGScenario A business model based on Genuine Referral between advertisers and publishers accomplished with Revenue sharing. The goal is to increase the Net Revenue Term Genuine referral is defined as the lead which would not have converted otherwise. Different Types of Referral Methodologies Involved ✖ Affiliate Marketing ✖ Organic SEO ✖ Paid Search ✖ Direct Type-in ✖ Comparison Shopping ✖ Banner Advertising ✖ Social Media
  7. 7. IsitReallyworkingas definedin1989?
  8. 8. Redefining ParasiticAffiliateMethodologies “The number of infected PCs jumped some 106% during the holiday season's first shopping weekend and 118% above normal on Cyber Monday." The infections recorded was between Nov. 25 and Nov. 28, 2016. The study in this presentation will revolve around the Malwares, Spywares, adwares, Junkwares.... developed with an aim to perform Advertisement Frauds. We conducted a research on more than 1000 applications that are compatible with windows platform in the last 3 months. And we found that over 45 % of the sample were involved in Advertisement fraud in a way or other. In all findings, these apps reflected every (Referral) visitor to be authentic, but it is actually Parasitic .
  9. 9. The sample set compromised of: 1.Extensions/Toolbars/Browser Plugins available on Standard market place offering either of the feature listed below ✖ Enhancing Shopping Experience ✖ Product/Price Comparison ✖ Cash-back and Reward On shopping ✖ Voucher/Discount Code 2. Utility Apps intended to enhance the User experience ✖ System Cleaner ✖ Browsers ✖ Performance Boosters ✖ Antivirus Products 3. Games 4. Search Enhancer/Translators TheStudy
  10. 10. ParasiticBehaviourfromShopandSaveUpOnInternetExplorer Shop and Save Up is an adware program that is commonly distributed through bundling.
  11. 11. TheBehavior-”False Click”
  12. 12. TheGamePlay
  13. 13. TheInvisibleLink
  14. 14. TheParasiticStrategy The Strategy was to redirect the user on Amazon.de from Amazon.de through affiliated link !!!! Is this Referral Worth Sharing incentive?
  15. 15. Parasitic extension "iDealsShopping OptimizerOnChrome" iDeals is a browser add-on that makes sure that we buy the right product and pay less by offering us alternative products by showing the same products on different stores with cheaper prices.
  16. 16. TheBehavior-”False Click” Better Deal for the same product from the same Domain?
  17. 17. TheGamePlay
  18. 18. TheInvisibleLink
  19. 19. TheParasiticStrategy The Strategy was to redirect the user on Amazon.com from Amazon.com through affiliated link !!!! Is this Referral Worth Sharing incentive?
  20. 20. Parasitic GameBlasteroids Blasteroids is the third official sequel to the 1979 shoot 'em up video game Asteroids.
  21. 21. TheBehavior-”False Click”
  22. 22. TheGamePlay
  23. 23. TheParasiticStrategy The Strategy was to redirect the user on Amazon.in from Amazon.in through affiliated link !!!! Is this Referral Worth Sharing incentive?
  24. 24. It’sNotjustamazon Therearemanymore…..
  25. 25. ItsjustnotAmazon…NooneisimmunetotheseParasites
  26. 26. TheMistakes
  27. 27. ✖ Referral Commissions is paid to affiliates for sales that would have happened on its own. ✖ Most of the prevailing solutions fails to identify these vulnerabilities. ✖ Lack of information available on the subject of affiliate adwares,spywares and shopping & Coupon plug-in to the affiliate Managers. ✖ Rapid release of the new breed of malwares, adwares, spywares intended to perform parasitic activities which makes the scenario more complex. ✖ Non-Usability of the heap of data gathered in the form of reports generated by current available solutions. Mistakes
  28. 28. BestPractices
  29. 29. ✖ Pre-Integration Review ✖ Post-Integration Review ✖ Regression Test Using the new breed of Adwares,Spywares & Junk wares ✖ Re-review of the Top Performing Affiliates ✖ Deriving action based on the data collected with programmatic solutions ✖ Creating clear set of Non-Compliance policy and enforcing them BestPractices
  30. 30. A number of parasitic approach identified in other channels used for deriving traffic : ✖ Organic SEO ✖ Paid Search ✖ Direct Type-in ✖ Social Media WHY & How ? ✖ There are parasitic software that allows you to place YOUR call to action over the top of ANY other branded page . So you can take Wikipedia, or Microsoft, or any other website and place your optin form, button, video, scarcity bar or clickable image on that website. ✖ New breed of Video frauds from expired Video domains. ComingsooninAFFILIATESUMMITEAST2017 UntouchedStory
  31. 31. Thanks! Q & A

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