Affiliate Fraud Detection

From use case: Affiliate Fraud Detection

A global streaming media company implemented real-time affiliate fraud protection and identified more than 66,000 invalid conversions over a 12-month period that had previously been classified as legitimate, according to a 2025 TrafficGuard report. The fraudulent activity included click hijacking, low-value sign-ups, and accounts created using fraudulent credentials. By blocking these conversions before commission payout, the company saved over $1 million and improved the accuracy of performance data used for partner optimization and budget allocation decisions.

In the ecommerce sector, a home products brand struggled with leaked discount codes and manual tracking of fraudulent affiliate activity, according to a Social Snowball case study. After implementing automated single-use coupon codes and fraud detection tools, the brand eliminated coupon fraud, reduced support team workload, and achieved a 22.86-fold return on investment with a 4% increase in total revenue. Separately, a digital advertising verification firm reported that a major ecommerce client discovered over 9% of affiliate traffic and up to 16% across all channels were flagged as invalid, inflating performance metrics and reducing true return on ad spend, according to mFilterIt.

In the iGaming sector, a betting operator discovered that nearly 100% of traffic from a major affiliate partner consisted of click spam and misrepresented impressions, according to TrafficGuard. After deploying machine learning-based traffic validation, the operator achieved a 26-fold return on investment and redirected recovered spend toward acquiring genuine customers. These cases illustrate that fraud detection yields returns not only through direct cost savings but also through improved data quality that strengthens downstream marketing optimization.