Understanding and Combating Fraud in Online Gambling Affiliations-Comprehensive Guide for 2024
In the dynamic world of online gaming, affiliate marketing has become a significant tool for promoting iGaming platforms. However, this lucrative avenue can also attract fraudulent activities that threaten the integrity of the industry. This article explores common methods of affiliate fraud in iGaming and effective strategies to prevent and detect such fraudulent activities.
Affiliate fraud in iGaming can take various forms, such as fake referrals, bot attacks, cookie placing, incentives, brand bidding, URL hijacking, identity fraud, multi-accounting, and unlicensed advertisement. One of the most concerning aspects is the use of automated bots to generate fake signups, cookie-stuffing attacks that manipulate user cookies, traffic and lead source spoofing, duplicate lead registrations, the use of fake influencers, and artificial traffic, as well as multi-accounting and payout fraud.
To combat affiliate fraud, iGaming operators employ a layered approach that integrates technology, process rigor, and strong affiliate collaboration. Advanced Fraud Detection Solutions, such as those offered by specialized software, play a crucial role. These solutions analyse visitor environments in real-time, detect bot behaviour and headless browsers, device fingerprint, and geo-masking.
Comprehensive affiliate vetting is another essential strategy. Operators thoroughly investigate new affiliates' traffic sources, audience authenticity, and historical data to ensure alignment with program standards. Continuous monitoring and behavioural analytics help identify anomalies such as unusual traffic spikes, suspicious conversion rates, or traffic from unexpected locations.
Identity Verification and KYC Procedures are also crucial at the player registration level. Robust identity verification steps, including facial recognition, validation against databases, and KYC and AML checks, prevent fake account creation and ensure legitimate user registrations.
Blocking suspicious traffic is another vital measure. Operators automatically blacklist IPs associated with bots, proxies, or competitors who generate fake clicks or conversions to maintain campaign integrity.
Educating affiliates and encouraging transparency is also essential. Open communication channels promote ethical behaviour and transparency, helping maintain a secure marketing environment.
Collaboration with reputable affiliates and networks can also help operators stay informed about fraudulent activities and maintain a secure marketing environment. iGaming operators should conduct thorough background checks on affiliates, including checks on the affiliate company, management body, and shareholders.
Regular audits and establishing clear terms and conditions for affiliate programs are also essential for a secure and trustworthy marketing environment.
In the rapidly growing iGaming market, projected to reach $87.91 billion in 2023, with an annual growth rate of 9.02%, maintaining the integrity of marketing channels is paramount. Operators may use fraud detection tools, collaborate with reputable affiliate networks, and adhere to regulatory guidelines to ensure the integrity of their marketing channels.
Sumsub's iGaming full-cycle verification and fraud prevention solution offers benefits such as deterring gaming-specific fraud, secure onboarding of players from over 220 countries and territories, and more.
In conclusion, while affiliate fraud poses risks to both operators and the integrity of the affiliate marketing ecosystem, a proactive and layered approach can effectively combat these threats. By combining technology, process rigor, and strong affiliate collaboration, iGaming operators can safeguard their revenue and maintain a secure and trustworthy marketing environment.
Affiliate fraud in iGaming isn't limited to fake referrals and bot attacks, but also includes activities like cookie placing, brand bidding, URL hijacking, identity fraud, multi-accounting, and payout fraud. To combat these threats, iGaming operators employ a layered approach that includes advanced fraud detection solutions, comprehensive affiliate vetting, identity verification and KYC procedures, blocking suspicious traffic, educating affiliates, collaboration with reputable affiliates and networks, regular audits, and establishing clear terms and conditions for affiliate programs.
