In a highly competitive industry like iGaming, bonuses and promotional offers are powerful tools for player acquisition and retention. However, they also open the door to fraudulent behaviour that can damage operator revenue and disrupt affiliate partnerships. As fraudsters become more sophisticated, bonus abuse and affiliate fraud have emerged as significant challenges that stakeholders across the industry must address collectively.
For affiliate marketers, understanding the scope of these risks is critical to protecting performance, building trust with operators, and sustaining long-term growth.
What Is Bonus Abuse?
Bonus abuse, also known as bonus fraud or promotional abuse, refers to players exploiting bonuses in a way that undermines their intended purpose. Common examples include:
- Multi-accounting: A single user registers multiple accounts to claim a sign-up or deposit bonus several times.
- Fake or synthetic IDs: Fraudsters create identities using false information or stolen data to register accounts under different names.
- Collusion: Groups of players work together, often across multiple IP addresses, to manipulate bonus outcomes.
- Abuse of referral schemes: Fraudsters sign up through their affiliate links or refer themselves to generate illicit commission.
These tactics can lead to significant financial losses, both in terms of fraudulent bonus claims and affiliate commissions paid out based on inauthentic activity.
The Impact on Affiliate Marketing
Affiliate marketing relies on accurate tracking, fair compensation, and mutual trust between affiliates and operators. Bonus abuse directly threatens these principles in several ways.
Firstly, when affiliate traffic is tainted by fraudulent activity, operators may question the integrity of the affiliate, even if the abuse occurred outside their knowledge or control. This can lead to delayed payments, strained relationships, or, in some cases, the termination of partnerships.
Secondly, affiliates who unknowingly promote to bonus abusers may see a drop in performance metrics such as player value, retention, and revenue share. This can distort reporting and undermine optimisation efforts, particularly for affiliates operating in multiple regions with different fraud risks and regulatory standards.
Finally, widespread abuse leads operators to implement stricter bonus policies or reduce promotions altogether, limiting the tools affiliates can use to drive conversions.
Regional and Regulatory Variances
The nature and prevalence of fraud can vary widely by market. In mature European markets, tighter Know Your Customer (KYC) protocols and regulatory oversight help mitigate some risks, although fraud persists. In emerging markets such as parts of LatAm or Asia, where identity verification infrastructure may be weaker, fraudsters can exploit gaps in compliance systems more easily.
Affiliates operating across multiple jurisdictions must therefore be aware of varying risk levels and adapt their strategies accordingly. This includes working with partners who demonstrate a strong commitment to fraud prevention and transparency.
Solutions and Best Practices
Mitigating fraud requires a multi-layered approach that involves both technological and strategic measures. For affiliates, some key actions include:
- Due diligence on operators: Partner only with reputable iGaming brands that have strong fraud detection and bonus abuse policies in place.
- Data monitoring and reporting: Utilise affiliate platforms that offer transparent, frequently updated data and flag any unusual behaviour patterns.
- Geo-targeted campaigns: Tailor promotions based on market-specific risks, avoiding bonus-heavy campaigns in high-fraud regions.
- Cooperation and communication: Maintain open dialogue with affiliate managers to stay informed of suspected fraud activity and act swiftly when issues arise.
On the operator side, tools like IP and device fingerprinting, machine learning fraud detection, and stricter KYC processes can significantly reduce abuse. Platforms like NetRefer also play a crucial role by providing affiliates and operators with the infrastructure to monitor campaign performance, track player behaviour, and detect anomalies before they escalate into revenue loss.
Conclusion
Fraud may never be completely eliminated, but its impact can be minimised through vigilance, collaboration, and the right technology. For affiliates, taking proactive steps to identify and avoid bonus abuse not only protects commissions but also strengthens their reputation and trust with operators.
As the iGaming landscape continues to evolve, staying informed and adaptable will be key. By aligning with trusted platforms and partners, affiliates can safeguard their efforts and continue growing their programmes in a responsible and secure manner