2. Tackling Fraud & Compliance In Performance Marketing

3. l Agenda Facts and Figures about Fraud Affiliate Fraud Merchant Fraud Tackling Affiliate Fraud Tackling Merchant Fraud Transparency and Compliance: “The role of an affiliate network”

4. l Facts and Figures about Fraud Imagine 10%* of the industry’s turnover is generated through fraud * Source: Edelman, Ben (2008): interview on affiliate marketing fraud published by Econsultancy (http://econsultancy.com/uk/blog/2908-ben-edelman-on-affiliate-marketing-fraud)

6. Clicks made manually and/or automatically by and/or on behalf of the affiliate without any interest in the merchant’s product(s) and/or services

7. Fake orders

8. Sales orders conducted by and/or on behalf of the affiliate without any interest to keep the merchant’s product(s) and/or use the service(s) offered by the merchant

9. Cookie dropping/spreading

11. Unauthorized use of the merchant’s brand name and thereby violation of the merchant’s SEM restrictions

12. Misplacement of promotional material

14. TT changes the affiliate’s initial self-categorization if necessary.

15. Upon registration, TT investigates the affiliates by using the TT User Check which gives off a signal in case an earlier flagged fraudulent IP is used by a new user.

16. TT maintains a blacklist of fraudulent affiliates.

17. Merchant approves or rejects each affiliate site registration for his program(s) manually (if he is in doubt, he contacts TT and/or the affiliate immediately).

19. Massive amounts of clicks are generated within a (relatively) short time frame (via foreign IP addresses).

20. After a click has been made/registered the user’s IP address is blocked for a predefined time period (e.g. 3 hours).

22. Orders are often made by the affiliate himself or his relatives (conduct last name checks in case of doubt).

23. Merchants should create a blacklist of fraudulent credit card transactions and fake delivery addresses.

24. Assessment period of transactions has to exceed max. return period granted to the merchant’s customer.

26. Affiliates provide insufficient information about their source(s) of traffic.

27. A-brand campaigns and campaigns with long(er) cookie runtimes are over proportionally affected.

28. Affiliates promote the same campaign via multiple networks and sites to cover their tracks and to make the fraud less obvious.

30. The monitor will pick out all tracking links, including other main networks.

32. Merchant cancels valid clicks and/or transactions.

33. Flat cancellation quota

34. Merchant applies a flat cancellation quota policy regarding all generated clicks and/or transactions.

35. Strategic campaign pausing

37. Merchant intentionally causes tracking problems and/or delays the fixing of such.

38. Delayed or non-payment of invoices

40. Reason behind each cancellation has to be given to TT and the affected affiliate(s).

41. Proof has to be provided by the merchant upon request.

44. After three monthly invoices have not been paid, TT pauses or stops the merchant‘s campaign(s).

46. By not acting as a merchant, affiliate or media agency TT does not face any conflict of interest.

47. TT is fully independent.

48. TT acts according to a strict code of conduct to secure its high traffic quality.

49. TT acts as an intermediary between merchants and affiliates.

51. Thank you. Vielen Dank. Heiko Hildebrandt