Affiliate Program Managers Beware!!Last week I became unwitting victim of latest Internet scam.
I own and operate 3 affiliate programs and as such am used to receiving and filing order confirmation emails all day long. I was noticing a recently registered affiliate (overseas) for EZineMoney.net was really racking up sales.
Much to my delight, I emailed to congratulate him on his success. Next day, four chargebacks in mail, all attributable to his sales/reseller site. Two cards, both charged twice with different Order Names. Then, phone started ringing with other people who did NOT order my ebook that had EZineMoney.net charges on their credit card statements.
Now, what I *should* have noticed with each/most of these orders was following:
1. Order Name and Name on Card were different.
2. Email addresses of customers were *strange* and often similar in nature ie: fmam@famfdma.net, fasdm@fmasdfm.com, mfa@mfdamfai.com, or, this: juansmithjtiti@yajhin.com. Of course, these don't exist.
3. None of these *customers* bothered to register for reseller program after ordering. About 75% of real customers do.
When fraud hit fan, I called a well-known competitor for his advice, and I wasn't two sentences into my explanation when he stated in no uncertain terms - fraud! He then told me to watch out for an email from this guy "almost begging" for his commissions check. No more than half an hour later, that *desperate* email graced my inbox! See, this astute marketer had been hit with this scheme recently.
Now, what makes this all more ludicrous, is this thieving reseller was using stolen credit card information JUST to receive his commissions a month or more later! I mean, how low-percentage can you get?
Oh silly me, here I was congratulating an active reseller and he must have been laughing his lyin' derriere off at my naivety! However, last laugh was on him, as his site was deleted, and, his HUGE commission check NOT written! Not surprisingly, when I informed him of deletion of his site and withholding of his commissions, he had parts to reply with following:
"all i can say that is not unfair and i will see a way to get my rights and my money. Best regards".
Double negative aside,"Best regards" my butt!
The story gets worse though. Shortly after undertaking a lengthy audit of orders, I came across my good friends friend, who registered under him of course, and voila!, a ton of fraudulent orders there. Migraine-bound at this point, I discover a third and fourth participant!
When all is screamed and done, a LOT of innocent people had their credit cards charged in my name (they will all be refunded of course) and my bank account is going to be reduced by an amount that would make most people's teeth rattle! There will be endless hours of refunding these innocent cardholders and adjusting applicable commissions (a notable affiliate program directory is innocent sponsor of first culprit). Plus, of course, my merchant account is in jeopardy due to sheer volume of fraudulent orders and chargebacks.