Affiliate marketing has surged in popularity and is now estimated to be worth around $12 billion globally. Because of this, many brands and stores are spending more money on affiliate marketing programs.

But before starting affiliate marketing, you must be aware of one thing: affiliate scams or frauds. These scams or frauds can wreak havoc on your business. From destroyed cash flow to reputation, the consequences are huge. 

So, is affiliate marketing a scam? Many business owners ask this question because they are afraid of being tricked by scammers. 

Fortunately, there are ways to spot the fraud. When you learn about fraud, you can take precautions. This way, you can protect your online business from malicious activities. 

In this article, I will discuss the most common affiliate marketing scams in 2024 and share insights on how to avoid affiliate marketing scams. 

What is Affiliate Marketing?

In simple terms, Affiliate marketing is a form of advertising in which a company pays third-party publishers to bring in visitors or leads for its products or services. These third-party publishers are called affiliate partners, and they earn a commission for promoting the company.

The ROI from affiliate marketing is significantly higher than other digital marketing types. Moreover, you don’t need to worry about any huge upfront payments. 

How can Affiliate Marketing Scams harm your online business?

Affiliate marketing scams can have a huge impact on businesses, depending on the type of scam, the time it goes undetected, and the length of the campaign.

Some of the consequences of affiliate scams are negative publicity, lower return on investment, losses incurred directly in the form of money, and the destruction of the trust of honest affiliates.

Now that you understand the consequences of affiliate marketing scams let's examine this industry's most common and dangerous scams.

1. Pay-to-join initiatives

Pay-to-join initiatives are initiatives in which the company requires a comparatively large deposit to start working as an affiliate.

Most affiliate marketers won't charge initially. So, why would a company make you pay to recruit new affiliates? Some might ask for a small deposit to keep out spam, but it's usually just a few dollars.

How to avoid it?

Leave immediately if you find an affiliate network that charges a fee to join. Before giving your credit card or PayPal information, make sure to:

  • Search for the company on Google
  • Ask questions in forums like AffiliateFix and affLIFT
  • Look for negative reviews and feedback

These programs will try to convince you that paying a fee upfront secures your spot in their “exclusive” affiliate program. They might claim it guarantees high commissions or access to special products.

2. Get-rich-quick scams

The get-rich-quick scheme is another scam you need to avoid. I all have seen those predatory and flashy ads that try to attract us by promising rapid financial gain.

Some affiliate marketing companies and products make these offers seem enticing, but in reality, the hype dies as you realize that success is not very easy to achieve and you will not become successful overnight.

How to avoid it?

Avoiding this one is very easy. You just need to understand that becoming rich overnight is not possible in affiliate marketing or any business. So keep your distance from these kinds of ads.

Always remember that building a prosperous affiliate marketing business is possible. But it takes determination, persistence, and a willingness to learn to achieve success.

3. Cookie stuffing

Next is Cookie stuffing, also known as cookie dropping, a type of affiliate fraud. To understand how cookies drop, you must understand what cookies are and how they work.

Simply put, when a website asks for permission to access cookies, it wants to place a small piece of code on your browser. Cookies store data about your internet activity. There are different types of cookies:

  • Session cookies: Save your browsing history and shopping cart items
  • First-party cookies: Save your preferences for websites you visit often, like login details and language settings
  • Third-party cookies: Track your activities online to help show you targeted ads later

Third-party cookies can hold sensitive information and are carefully monitored by advertising companies, web hosts, and developers. They have parameters that can be exploited if they fall into the wrong hands.

One of these parameters is the domain, which shows who issued the cookie or where the user is accessing a site. This helps merchants know the source domains of their visitors but also allows fraudsters to manipulate cookies for their benefit.

Fraudsters use various methods to drop cookies, such as pop-ups, inline frames, images, animations on web pages, and browser plugins.

Once cookies are dropped, the scammers can pretend that a user is visiting a merchant's site through their own site, taking a commission that should go to a legitimate affiliate.

How to avoid it?

Now that you know what cookies are and what cookie stuffing is, the question arises: How can you avoid it? There are two methods: manual and automatic.

The manual method involves closely monitoring analytics for signs like a sudden rise in affiliate payouts, unusually high or low conversions, or more publisher withdrawals from the affiliate program. If you notice these signs, block the suspicious publishers and report them to the relevant authorities to help address the problem.

Now, the automated way: You can manage it manually, but a better approach is to use automated ad fraud detection and prevention tools. You can also use advanced affiliate marketing tools to monitor affiliate traffic, spot irregularities, block unusual redirects, and more.

4. False attribution (app installs)

Similarly, attribution fraud happens when scammers wrongly claim credit for conversions they didn't cause. They manipulate the “last-click-attribution” model to associate an organic installation with themselves.

In 2018, Google took action against Cheetah Mobile's File Manager and the Kika Keyboard for falsely boosting app installs through fake affiliate clicks as part of a wider crackdown on this deceptive practice.

How to avoid it?

To avoid attribution fraud, follow these steps:

  • Use different attribution models: Instead of relying on last-click attribution, try using other models, such as first-click or linear attribution. This will give you a better idea of where conversions really come from.
  • Check traffic quality: Regularly assess the quality of your traffic sources. Watch for strange patterns or sudden increases in conversions, and use tools to spot inconsistencies.
  • Use fraud detection tools: Employ tools made to find and stop fraud in attribution. These tools analyze behaviors and patterns to catch suspicious activity.
  • Verify partners and affiliates: Thoroughly check their background and track record before partnering with anyone. Look for signs of past fraud or bad behavior.
  • Be transparent and communicate: Communicate openly with partners and affiliates. Clearly explain expectations and regularly review how they're doing to keep things clear.
  • Stay updated on industry trends: Stay informed about new fraud tactics and best practices in the industry. This helps you adjust your strategies to stay safe.

Following these steps can greatly lower the chances of being tricked by attribution fraud and protect your marketing investments.

5. Bots traffic

Bot traffic is the next scam you can encounter in your affiliate marketing journey. But first, let's take a closer look at what bot traffic is and why businesses are looking for ways to manage bot traffic on their site.

The term “bot traffic” often sounds negative, but it isn't always bad; it depends on the bots' purpose.

Some bots are essential for useful services like search engines and digital assistants (e.g., Siri, Alexa), and most companies welcome these bots on their sites.

However, other bots, such as those used for credential stuffing, data scraping, and DDoS attacks, can be harmful. Even less harmful ‘bad' bots, like unauthorized web crawlers, can be problematic because they mess up site analytics and cause fake click fraud.

It's estimated that over 40% of all Internet traffic is bot traffic, with a significant portion being malicious bots. Many organizations seek ways to manage bot traffic on their sites.

Some dishonest affiliates use these bots to create fake product leads and clicks to earn quick money in affiliate marketing campaigns. Bot attacks can involve using automated networks to fill out forms on your website or screen-refreshing bots to increase page views.

How to avoid it?

The first step to avoid bot traffic on a website is to use a robots.txt file. This file gives instructions to bots about how to interact with the page and can block bots from visiting or interacting with the site. However, it only works for good bots and won't stop malicious ones.

However, several tools can help reduce bad bot traffic. A rate-limiting solution can detect and block bot traffic from a single IP address, but it won't catch all malicious bots. 

A network engineer can also analyze site traffic to identify suspicious requests and block those IP addresses using a filtering tool like a WAF. This method is time-consuming and only stops some of the malicious traffic. To better safeguard your infrastructure, consider implementing DDoS protection, which helps filter out harmful traffic and ensures uninterrupted access for legitimate users.

A bot management solution is the easiest and most effective way to stop bad bot traffic. These solutions use intelligence and behavioral analysis to block malicious bots before they reach the website.

For example, Cloudflare Bot Management uses data from millions of sites and machine learning to detect and stop bot abuse. Smaller organizations can use features like Super Bot Fight Mode for similar control and visibility over their bot traffic.

6. Pyramid schemes and MLMs

You may have encountered many affiliate marketing scams and schemes that work under the radar. Some affiliate programs are multi-level marketing (MLM) or pyramid schemes in disguise.

These scams often look like legitimate affiliate training programs to attract people who want to make money online. They're just recruitment funnels that make money from new recruits.

Take Empower Network, for instance. Initially led by Dave Wood, it was a legit blogging SEO service. Members paid $25 monthly for a duplicate website on the Empower Network domain. 

The aim was to recruit more members and achieve top search engine rankings. However, when the domain was penalized, and search traffic declined, they shifted focus to pricier marketing modules.

As a result, fewer affiliates joined, and less money circulated among them. Eventually, the empower network collapsed. Due to its business practices, many criticized it as a pyramid scheme or affiliate marketing scam.

These schemes are predatory in nature! So the question is, how can you avoid them? Let's find out!

How to avoid it?

There are three major ways you can avoid being the prey of MLMs.

  • Avoid paying upfront fees or making purchases: Legitimate affiliate programs won't require you to shell out money or buy products to earn commissions. Be cautious of programs that ask for cash upfront; they might focus more on recruitment than actual sales.
  • Research the company's reputation and legal standing: Read reviews, check testimonials, and check if there are any legal problems or complaints filed against the company. If a program has been shut down or investigated by authorities in the past, it's safer to stay away.
  • Seek advice from online communities: Engage with online groups to gather insights on potential scams. When you join an affiliate program, ask others in the industry about their opinions and experiences.

7. Lead frauds

Some scammers cheat the system using lead fraud in affiliate programs.

They create fake or stolen leads by submitting leads with fake, wrong, or incomplete details. They might entice users with rewards for submitting leads or purchasing leads from third-party providers without checking their quality.

How to avoid it?

Here are simple steps to prevent lead fraud:

  • Define clear lead criteria: Ensure your affiliates understand the type of leads you want and update them on any changes.
  • Use double opt-in or verification: This prevents using stolen or fake emails that could damage your reputation.
  • Regularly assess lead quality: Investigate affiliates who produce low-quality leads.
  • Use lead validation tools: These tools identify and remove poor-quality leads early on, saving you time and resources.
  • Know your affiliates: Verify their identity and maintain open communication. This builds trust and allows you to address any concerns or issues promptly.

One method involves making fake accounts to submit leads. They also redirect traffic from legitimate sources to their landing pages and use bots or automated tools to submit leads. Another tactic is using stolen personal information to create fraudulent leads.

8. Hijacking URLs

In this scam, a scammer might create a website or name a product similar to your company's to take credit for organic or direct traffic. When visitors land on the fake site, a cookie is placed on their browser and then redirected to your site.

This lets the scammer claim credit for directing traffic to your site whenever someone types in the wrong URL or clicks on the wrong page in their browser's search results.

URL hijacking is a type of cookie stuffing, but it's different enough to be discussed separately. So, the question arises: How can we avoid it? Let's find out next!

How to avoid it?

Here are some simplified steps to protect your website and brand from URL Hijacking:

  • Secure an SSL certificate: SSL certificates show search engines your site is trustworthy and protect user data during transactions. Without one, Google might flag your site as unsafe, and users may doubt its legitimacy.
  • Register various country top-level domain names: Secure different domain endings and common misspellings of your brand. Redirect these domains to your main site to prevent scammers from using similar URLs.
  • Monitor URL hijacking in real-time: Stay vigilant for attempts to steal your URL and shut down fraudulent sites promptly to safeguard your brand's reputation.

Now you know how to protect yourself from URL hijacking, so let's jump onto the next one.

9. Sale & transaction scams

Now, in these types of affiliate marketing frauds, one of the biggest problems for affiliate managers is where affiliates cheat by faking sales or transactions. Scammers might use fake or stolen credit cards to buy things through their affiliate links or codes.

They earn money from these fake sales.

Another sneaky tactic they use is messing with conversion tracking data. This makes it look like they're making real sales when they're actually not.

So, how can you keep yourself safe from these types of scams? Let's find out now!

How to avoid it?

Here are simple ways to protect your affiliate program from Sale & Transaction scams:

  • Use trusted payment methods: Use reliable payment gateways to reduce the risk of fake transactions.
  • Establish fraud prevention measures: Establish clear policies and procedures to detect and prevent fraud in your affiliate program.
  • Review commissions manually: Instead of automatically approving commissions, personally review them to detect potential fraud.
  • Monitor affiliate performance: Monitor your affiliates' sales numbers and average sale amounts. If you notice anything unusual, it could indicate fraud.
  • Educate your affiliates: Educate your affiliates about the risks and consequences of sales fraud and encourage them to report any suspicious activity they encounter.

Now you know how to save business from Sale & Transaction Scams. So, let's take a look at another well-known scam.

10. Google Ad hijacking & website cloning

Google Ad hijacking is a scam where an affiliate creates a landing page that looks exactly like your brand's website. They might use a domain name similar to yours, making it easy to mistype. Then, they pay for ads using your brand name or related keywords.

When customers search for your brand and click these ads, they land on the affiliate's fake site. If they buy something by clicking the “buy” button, they're redirected to your real store. The affiliate gets credit for the sale, even though they shouldn't have.

This means you end up paying for sales they tricked customers into making. Stealing your brand's traffic and sales is a pretty sneaky tactic.

How to avoid it? 

Here are simple steps to protect your brand from this kind of scam:

  • Establish clear advertising rules: Make it explicit that affiliates cannot bid on your brand's keywords or mimic your brand.
  • Secure misspelled domain names: Prevent affiliates from creating lookalike sites by acquiring domain names that are commonly misspelled versions of your brand's name.
  • Protect against copyright infringement: Take legal action if an affiliate uses your brand's assets without permission. Defend your brand's reputation vigorously.
  • Enforce rules: If an affiliate breaks your guidelines, remove them from your program. Refuse to pay any commissions earned through dishonest tactics.

After knowing these steps, you're almost immune to Google Ad Hijacking & Website Cloning scams.

11. Spoof traffic

Spoof traffic in affiliate marketing is a deceptive tactic in which fraudsters generate fake website visits or clicks to inflate their affiliate earnings. It essentially creates the illusion of genuine user engagement.

Fraudsters use automated bots, scripts, or other tools to bombard the affiliate link with clicks and visits. These are not real people interested in the product; they are just numbers on a page.

How to avoid it?

There's no foolproof way to eliminate spoof traffic entirely. However, you can take steps to make it much harder for fraudsters and significantly improve the quality of your affiliate data. Here are the steps to avoid it:

  • Monitor traffic patterns: Regularly analyze your website traffic for unusual spikes or sudden drops.
  • Track conversion rates: Pay close attention to each affiliate link's conversion rate (sales or actions).
  • Analyze cookie tracking: Monitor how cookies are placed and behave. Spoof traffic might involve manipulating cookies to steal credit.

These strategies will prove highly effective. These will help you significantly reduce the risk of spoof traffic impacting your affiliate marketing program.

12. Human deception

Last on the list and most important one is Human Deception. Some troll farms hire people to click on ads, fill out forms, and do other activities on your website. 

Since real people are involved instead of automated bots, this type of fraud is more challenging to spot. Human fraudsters can bypass “honeypots” from fields that usually catch bots because they can see and avoid them.

How to avoid it?

In fraud detection, behavior is monitored using a set of risk rules. Each time user data is checked against these rules, a risk score goes up or down.

For instance, a basic rule might be checking if the user's IP address matches the cardholder's address. But rules can get more complex:

  • How many times did they try to connect per hour?
  • How quickly did they fill out your signup form?
  • How long did it take them to move from your conversion page to checkout?

These rules are unlimited, and having skilled fraud managers can greatly help. Your fraud management system should allow you to create these rules or get machine learning suggestions manually.

After reading this blog, you have learned about the most malicious and predatory scams in affiliate marketing. So now, let's jump to a conclusion.

Ready to avoid common Affiliate Marketing Scams?

If you think affiliate marketing is a scam, you're mistaken. The majority of affiliate marketing companies are trustworthy and operate fairly and openly. Affiliate marketing offers a safe and profitable opportunity to earn money online.

However, just as any industry does, a few bad actors can damage its reputation. I recommend that you pay close attention to the terms and conditions of the contract. 

I hope you can answer this question now: Is affiliate marketing a scam or real? Do you have any other questions? Make sure you let me know in the comments below.

Affiliate marketing can be vulnerable to fraud. Some affiliates might resort to dishonest tactics like generating fake clicks, manipulating cookies, or creating phony leads and sales just to get a commission.

Yes, affiliate marketing is completely legal. In fact, it's one of the most popular digital marketing strategies many businesses follow. As long as you document everything, there's no chance of illegal activities.

Affiliate marketing isn't a scam. Many businesses use this specific type of marketing strategy. However, the profit potential is comparatively lower.

Yes, you can lose money with affiliate marketing. If the affiliate marketer uses any scam or dishonest strategy, you will lose a significant amount of money.

Rishabh Gupta loves social media and uses his skills to make it better. With a background in communications and a good sense of trends, he creates engaging social media strategies. With over 3 years of experience, Rishabh improves online presence and connects with audiences. He makes sure every post is interesting and every strategy works well.