Aug 15, 2024
Written by
CJ
Trying to start a conversation about partnership fraud is a lot like getting people to discuss life insurance—everyone knows it’s important, but they’d rather avoid it.
Still, it’s a conversation we need to have to protect our businesses. More importantly, we must take action to make sure we have the best protections in place, whether you’re an advertiser or a trustworthy publisher.
This comprehensive article presents the challenge of fraud in the performance marketing industry, gives a detailed overview of CJ's multi-layered approach to fraud protection, and provides key takeaways for both advertisers and publishers.
Contents |
Every marketer wants to protect their brand and investments from value-stealing efforts. While one can argue that partnership is one of the “cleanest” digital media sectors, there are still plenty of fraudsters trying to make off with your money. Research shows fraud costs our industry more than $1.4B every year.
Fraud is theft, and it’s in everyone’s best interests to detect, mitigate, and prevent it. Less fraud means more money in every good actor’s pocket—be they an advertiser, publisher, or creator. Networks and tech platforms like CJ, with their extensive view of the partnerships ecosystem, need to lead the charge in improving program and traffic quality for the benefit of all stakeholders. We take that responsibility very seriously.
This article provides a high-level explanation of our approach, how it’s unique, and why it’s so effective at detecting and mitigating fraud.
CJ spends millions each year to monitor, detect, and stamp out fraud, keeping advertisers and publishers ahead of these ever-evolving criminal strategies. These significant investments add enormous value to every industry stakeholder’s bottom line.
Since we started in 1998, CJ has always prioritized network quality and anti-fraud measures, setting us apart from competitors. While other networks had lax onboarding processes, we built a massive Network Quality team to carefully review every new publisher. This commitment attracted the world’s most valuable and quality-focused advertisers.
As the internet has grown and evolved, so has our approach. We’ve added the industry’s most advanced fraud detection and mitigation technology alongside our strong team of experts. We’ve invested millions in network quality and compliance solutions, constantly refining our processes (with hundreds of updates!) to guarantee the highest level of fraud protection.
Our biggest takeaway from the past 25+ years is that a single approach isn’t enough to tackle an industry issue as persistent and insidious as fraud. Success stems from a multi-layered strategy, ensuring the best results for both brands and publishers.
While other companies eventually recognized the need for strong fraud protection and adopted low-cost, tech-only solutions, we took a different route. There are plenty of third-party platforms and tools that detect the probability of fraud, and many of them are valuable. However, our extensive experience in fraud protection led us to develop a more comprehensive strategy that drives measurably better results.
To deliver the best network quality, CJ focuses on two core forms of protection:
Our Data Science team has developed advanced AI-powered models that use cutting-edge machine learning algorithms to spot complex fraud patterns and anomalies. We apply these models to every aspect of partnership activity. Here are a few examples:
These models (and many others) are always working to protect our advertiser, publisher, and creator clients. By leveraging the unique strengths of each model, we've created a multi-pronged defense system that offers comprehensive protection against a wide array of threats.
Our models continuously learn and adapt to new threats before they can affect your results, ensuring high accuracy and effectiveness. They also incorporate contextual awareness, recognizing the unique characteristics of each publisher and the varying nature of fraud across different regions. Here are the core components of our approach:
Our AI models excel at understanding information in context, leading to more accurate fraud detection. What might be normal for one publisher could be suspicious for another, so having granular contextual awareness is crucial. Our AI model analyzes various contextual cues to make the best-informed decisions:
Our proprietary AI models are constantly evolving to fight fraud. They stay ahead of emerging threats by continuously monitoring performance across all our advertiser and publisher clients and incorporating analyst feedback on flagged cases to retrain the models with new data. This adaptive learning, combined with custom tailoring, delivers superior fraud detection.
Third-party data is crucial in our AI models' fight against fraud. By integrating information from external sources, our models get a broader perspective, enhancing their ability to detect evolving patterns and anomalies. This adaptability is essential in the ever-changing fraud landscape, where fraudsters are always tweaking their tactics. Integrating third-party data makes our fraud detection models even more effective in safeguarding our client’s investments.
Every CJ client benefits from the breadth and depth of our footprint. By monitoring hundreds of thousands of campaigns across various dimensions, we can identify more bad actors and neutralize new fraud schemes before they become a significant threat.
Our fraud detection AI models are not only accurate—they’re also fully transparent. They come with “explainability” features that show exactly what factors and patterns triggered a fraud alert. We want to build confidence in our AI-powered fraud detection solutions by making the decision-making process clear. This transparency helps investigators understand why each decision was made, which builds trust in the system and ensures fair outcomes for all advertisers and publishers.
Data from all programs across our network and various third-party anomaly detection platforms are incorporated into our proprietary AI and machine-learning models to assign a “fraud probability score” to each publisher. A high score might suggest confirmed fraud, but we always dig deeper before taking action. We never want to remove or blacklist a partner if there are legitimate explanations or if they have genuine intentions to deliver value.
This is where CJ’s dedicated team of network quality experts steps in to analyze data from our fraud probability dashboard and investigate potential issues. CJ handles all the nitty-gritty of mitigation, which saves clients time and ensures highly-trained fraud detection experts examine each issue. The CJ Network Quality team reaches out to partners, works together to make changes, pauses individual publisher programs if needed, and stops fraud in its tracks. We remove deliberate bad actors from the network, while partners with good intentions get help to identify or rectify problematic operations.
We firmly believe brands shouldn't have to pay a premium for a safe and reliable network and that your solutions partner network or platform should handle fraud protection. At CJ, our industry-leading network quality and anti-fraud services are included at no extra charge for every client.
Our approach makes a big difference for advertisers and publishers. When new advertisers join CJ, we analyze their existing partnerships to make sure every dollar is being spent wisely. Shockingly, across hundreds of programs onboarded annually, an average of 5% of publishers in our clients' previous programs are flagged for fraud. Even worse, these new-to-CJ brands were unknowingly giving 9.3% of their budget to these bad actors! By partnering with CJ, brands get access to our multi-layered network quality and anti-fraud protection, allowing them to redirect these resources to legitimate publishers who drive real growth.
Too often, fraud discussions focus solely on how advertisers benefit from better protections, but reputable publishers gain just as much value. Our advertisers have almost 10% more money on average to invest in programs with quality partners thanks to our fraud-free environment. A clean network helps every good actor in our industry grow!
Many industries face high levels of government regulation. Keeping your program in line with these rules is crucial for providing a great customer experience and avoiding legal trouble.
To meet these needs, CJ offers an optional service called Program Compliance. This service adds extra safeguards to make sure your marketing programs meet all regulatory requirements. Our compliance experts can provide more details based on your industry or vertical—just ask your CJ account team for more info.
At CJ, we believe a strong foundation in network quality and anti-fraud protection is key to the growth and vitality of the performance marketing industry. We're committed to leading the way by giving clients the most robust safeguards and assurances. Our comprehensive solution helps advertisers, publishers, and creators benefit from safer, mutually beneficial relationships.
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