The iGaming industry has experienced fast-growth in the past few years, fueled by the popular casinos, sports betting platforms, poker rooms and nascent digital gaming ecosystems. The growth is at its core through affiliate marketing (AM), which is a powerful tool that helps operators reach players through third party publishers, influencers and media partners. When arranged correctly, affiliates are lucrative for directing traffic, registrations, or revenue. They are easily a cost-effective source of entry when handled properly. But with the presence of opportunity, also comes danger. Let’s dive into the details about iGaming Affiliate fraud in detail.
iGaming affiliate fraud has become one of the most expensive and very significant challenges to operators globally. Such fraudulent affiliates gain access to tracking systems, bonuses, and attribution models to create bogus commissions to illicit commissions, in return that defraud the operators and regulators at the financial loss of legitimate operators, regulators and even legitimate players. Unchecked, affiliate fraud can eat away profit margins, cause loss of brand reputation, damage brand integrity, and even lead to regulatory fines.
iGaming affiliates’ fraud is the fraudulent use of deceptive methods by affiliates to receive and/or claim commission. Rather than accurately and genuinely refer high-quality gamers through affiliate posts, fake affiliates inflate clicks, registration, deposit, and wagering activity. Affiliate fraud, in contrast to traditional payment fraud, tends to be nuanced and protracted. It might look profitable, on the surface — high traffic, higher conversions, higher commissions — but ultimately it results in low-value or fake users who rarely engage with the platform. Affiliate fraud may be perpetrated by:
Due to the trust, attribution models and reliance on personal data as well as third-party data, affiliate marketing is a strong target for abuse in the iGaming ecosystem.
Awareness of the types of affiliate fraud is the first step to preventing them from happening. Most common and damaging types in iGaming are those that fall below
Cookie stuffing happens when affiliates secretly put tracking cookies on users’ browsers in cookies (without their consent and without an actual connection to it.) This is frequently made possible by hidden scripts, pop-ups, or iframes. So the affiliate has been credited for the players they never really referred. And even natural traffic or direct traffic can be hijacked, with the effect of overcharging commissions and skewing attribution data.
In this process affiliates create dummy registrations with bots, script or accounts created manually. These accounts often:
Fake sign-ups skew conversion metrics and waste marketing spend without enhancing actual player value.
Incentivized Traffic is when rewards are offered, like cash, gift cards and bonuses, to the users for signing up or depositing. Even where incentives do lead to volume, they are largely designed to lure customers who are purely reward-driven, and not game-oriented. This results in:
A lot of affiliate programs explicitly forbid incentivized drives because they are simply bad.
Brand Bidding: In paid search campaigns, the affiliate bidding marketplace has set up the site where affiliates bid on branded keywords of an operator’s branded brand and the other operator. This practice:
In some instances, affiliates may mask the bidding used by affiliate companies or affiliates camouflage brand bidding with misspellings or geo-modifiers to escape detection.
Browser hijacking involves the use of malware or harmful add-ons that redirect users to affiliate-side links on websites. Even if a player meant to visit an operator directly, the hijacked browser redirects this session via an affiliate. This is especially damaging because it:
Affiliates could create or maintain multiple accounts with players to make use of welcome bonuses and promotions. These accounts are often:
Click fraud is the creation of false clicks either by bots or scripts or click farms to artificially inflate traffic numbers. Though this will not immediately trigger payouts, it:
Some affiliates use stolen, leaked, or recycled user data to create accounts without genuine user intent. These players may already exist in other platforms or databases. This exposes operators to:
The iGaming affiliate fraud can be detected with careful and data-driven monitoring. Common red flags include:
Sudden surges in clicks, sign-ups, or deposits—especially without a clear marketing campaign—often indicate bot activity or incentivized traffic.
If players referred to you register but rarely log in, deposit, or wager, it suggests poor-quality or fraudulent traffic.
Multiple accounts or conversions originating from:
Traffic claimed as “sports betting enthusiasts” but showing no betting activity or erratic gameplay behavior is a major warning sign.
Affiliate payouts that increase sharply without corresponding growth in player LTV or revenue should be investigated for fraud immediately.
Affiliate fraud affects more than just marketing budgets—it can destabilize the entire iGaming operation.
Fraudulent payouts drain marketing budgets while generating little or no long-term revenue. Operators may also incur additional costs for investigations, tools, and remediation.
Association with fraudulent affiliates can harm an operator’s reputation among:
Fraudulent traffic often overlaps with:
Affiliate fraud distorts performance metrics, making campaigns appear profitable while delivering negative ROI in reality.
Unchecked fraud can lead to disputes, contract terminations, and loss of trust among legitimate affiliates, weakening the overall affiliate ecosystem.
Affiliate fraud prevention is no longer solely a marketing responsibility. Compliance and AML teams play a critical role.
Cross-functional collaboration ensures that suspicious affiliate behavior is identified early and investigated holistically.
Compliance teams help review affiliate payouts for anomalies, ensuring they align with genuine player activity and risk profiles.
Certain regions and behaviors carry higher fraud risk. AML teams can flag:
Proper documentation and audit trails are essential for:
As fraud tactics evolve, so do prevention strategies. The future of affiliate fraud prevention in iGaming is driven by data, automation, and compliance.
Machine learning models can detect subtle patterns across traffic, behavior, and financial data that humans may miss.
Solutions like KYCHub’s fraud & money laundering prevention act emphasise enhanced due diligence for affiliates, continuous monitoring, and real-time risk scoring. This approach treats affiliates not just as marketers, but as regulated partners within the iGaming ecosystem.
Operators are moving toward real-time detection of abnormal behaviors, enabling faster responses and reduced losses.
Regulators are increasingly scrutinising affiliate practices, pushing operators to adopt transparent, compliant, and well-documented affiliate programs.
iGaming affiliate fraud is a complex and growing challenge that affects revenue, compliance, and brand integrity. From cookie stuffing and fake sign-ups to bonus abuse and stolen data, fraudulent affiliates exploit weaknesses in tracking and trust-based systems.
By understanding common fraud types, recognising red flags, involving global compliance and AML teams, and adopting advanced prevention strategies, iGaming operators can protect their businesses and foster a healthier affiliate ecosystem. As technology and regulation evolve, proactive fraud prevention will be a defining factor for sustainable success in the iGaming industry. Book a free demo with us to gain a deeper understanding of our platform.
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