Rogue CPL Activity

Posted by on Oct 22, 2013 in Affiliate Fraud, Arbitrage, CPL

Cost Per Lead (CPL) is an advertising model where the advertiser pays for sign-ups from interested consumers. Affiliates play the middle men in these transactions for they send the interested consumers in the direction of the advertiser. So for each consumer that signs up with the advertiser, the affiliate in question is paid a commission or small fee. By offloading the task of sourcing consumers onto the affiliates, advertisers are spared the hassle of everything that this work involves. So it’s a great model, but unfortunately still open to abuse.

The following screenshot shows the MaxBounty program for the World of Tanks advertiser. world of tanks affiliate fraudNote the following:

  • Commission rate of “$2.65″/lead. This means that the advertiser will pay affiliates $2.65 for each sign-up that is sent their way
  • The advertiser is only interested in traffic from USA or Canada
  • Incentive traffic is prohibited, indicating that affiliates can not encourage consumers to sign-up with the advertiser by offering rewards the likes of cash or points in some program.

Now take a look at a screenshot from an online forum that pays subscribers to do small online tasks (much like Amazon’s Mechanical Turk):
world-of-tanks-2Do You See What I See?

Most seasoned affiliate managers know where this is going, but don’t worry if you’re not sure where we’re heading yet because we are going to go through this step by step.

The online forum is offering $0.40 to users in USA or Canada who will sign up using the link that has been provided. This is a packet trace of me following the link using my browser, the screenshot below shows the result.

world of tanks affiliate fraud This is what’s going on in the packet trace:

  1. Subscriber in the online forum decides he wants the $0.40 on offer in the online form
  2. He/she starts the task by navigating to http://tinyurl.com/olghhz7
  3. Tinyurl redirects to http://macgoodiebag.jncbusinesscreations.com/world-of-tanks/?mn=1154 which then uses Javascript and an HTML form to redirect the browser to http://macgoodiebag.jncbusinesscreations.com/world-of-tanks/ (this essentially launders the referrer)
  4. http://macgoodiebag.jncbusinesscreations.com/world-of-tanks/ sets up a full screen iframe which contains www.mb57.com which redirects to the following affiliate click URL: www.maxbounty.com/lnk.asp?o=5572&c=63867&a=105565&s1=tanks
  5. This URl redirects to track.popmog.com which redirects to worldoftanks.com

So what you have here is an affiliate taking advantage of a price differentiation in two markets. Of course, one of these markets is of his own creation, but essentially this equates to arbitrage (pay $0.40 and sell $2.65) and a bad deal for Worldoftanks (the poor advertiser that bankrolls this operation).

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