Preventing iGaming Affiliate Fraud in 2024: A Comprehensive Guide
In the rapidly expanding iGaming industry, which is projected to reach $87.91 billion in revenue in 2023, the importance of maintaining the integrity of marketing channels cannot be overstated. Affiliate marketing, a common practice in iGaming, involves third parties promoting online games for a commission on each referred player. However, this open market is not without its risks, particularly affiliate fraud.
Affiliate fraud can take various forms, including creating fake accounts through affiliate links to generate illegitimate commissions, using bots or incentivized traffic to simulate genuine player activity, click fraud manipulating clicks to inflate metrics, and fake sign-ups with non-genuine accounts. Collusion between affiliates and players to share commissions also constitutes affiliate fraud.
The risks associated with iGaming affiliate fraud are significant. Illegitimate payouts to fraudsters lead to financial losses for operators, while increased marketing costs on low or no-value traffic compromise program integrity. Furthermore, fraudulent activities can evade detection by leveraging advanced tools like AI, deepfakes, or fake identities, making it increasingly difficult for operators to differentiate between legitimate and fraudulent referrals.
To combat these risks, iGaming operators and affiliate platforms employ anti-fraud logics. These measures include filtering based on IP uniqueness, geo-location, device, and suspicious traffic patterns. Regular review and analysis of affiliate performance metrics can help identify unusual patterns, spikes in activity, or indicators of potential fraud. Thorough due diligence checks on affiliates, including investigations into the company, its management, and shareholders, are also crucial.
Collaboration with reputable affiliates and networks encourages them to report any suspicious activities they encounter. Sharing information about fraudulent activities with other industry players can help strengthen the overall security of the iGaming market.
Operators should also establish clear terms and conditions for their affiliate programs to minimise confusion and potential fraud. Regular audits help ensure compliance and detect any potential fraudulent activities.
In the fight against affiliate fraud, technology plays a vital role. Solutions like Sumsub's iGaming full-cycle verification and fraud prevention solution can deter gaming-specific fraud in real-time, including bonus abuse, affiliate fraud, and account takeovers. Sumsub's solution allows for doc-free verification or verification through a global database in jurisdictions where they are accepted, ensuring a secure onboarding of new players from over 220 countries and territories in less than 30 seconds.
In conclusion, maintaining the integrity of marketing channels in the iGaming industry is paramount. By employing anti-fraud measures, collaborating with reputable affiliates, and leveraging advanced technology solutions, operators can mitigate the risks associated with affiliate fraud and ensure a secure and efficient marketing ecosystem.
[References] [1] Affiliate Fraud in iGaming: Types, Risks, and Solutions. (2021). Retrieved from https://www.sumsub.com/blog/affiliate-fraud-in-igaming-types-risks-and-solutions/ [2] The Impact of Affiliate Fraud on the iGaming Industry. (2020). Retrieved from https://www.sumsub.com/blog/the-impact-of-affiliate-fraud-on-the-igaming-industry/ [5] Affiliate Fraud: The Hidden Threat to the iGaming Industry. (2019). Retrieved from https://www.sumsub.com/blog/affiliate-fraud-the-hidden-threat-to-the-igaming-industry/
- To maintain a secure marketing ecosystem in the iGaming industry, operators can analyze sports affiliation trends to identify potential fraud using tools like sports-analysis, which can help detect suspicious patterns in affiliate performance.
- In the ongoing battle against affiliate fraud, iGaming operators should also utilize advanced anti-fraud technologies, such as AI, to detect fraudsters who may evade detection by using fake identities or deepfakes, as these technologies can identify irregularities and allow operators to prevent fraudulent activities.
