Online fraud from abroad


myspace_crimescene_small.jpgADOTAS — Cyber criminals are often located in developing regions where little fraud enforcement efforts exist.

Many B-to-C and B-to-B companies have expanded or are looking to expand their business overseas and capture global customers and clients. The potential risks and rewards of expansion into the BRIC markets are high.

China, the most populous country in the world, is predicted by ZenithOptimedia to be the fourth largest advertising market by 2010, while Russia will rank sixth, Brazil seventh, and India thirteenth. Not only is China’s ad expenditure growing but also the country’s total number of Internet users. China surpassed the U.S. as the biggest user of the Internet last June, and last month the official China Internet Network Information Center said that the number of Internet users in China has reached 298 million. According to the U.S. Census Bureau our population was 305,762,073 on February 6.

About two weeks ago, I received an email from a businessman in one of these developing regions, an excerpt from that email follows:

“Hello, I am an affiliate from China. I know that almost all CPA network hate Chinese affiliates, because they are almost all fraud. I was also a fraud before, I earn some money from some CPA network with my fraud activity.

But now I do not want to fraud because it’s too tired, and very dirty, and the account often be terminated. Even so, there are a lot Chinese “affiliate” do the fraud activity to all CPA network everyday, and they have a lot of experience, so they can escape the punishment from the CPA network. Of course, they earn a lot of money. But it’s dirty.

So I want to cooperate with you. Every month as long as you give me a certain degree of rewards, I will reveal to you all the Chinese fraud affiliates, and every month I will reveal new ones to you. I believe that through my efforts, you and the advertiser will restore hundreds of thousands of economic losses.

So I can get clean money from you, and you can restore economic losses. I think this is a win-win model.

If you have the intention, please contact me …”

Needless to say, I did not respond. Fraudulent individuals will mask their locations and often steal a citizen’s identity from a developed country as a tactic to attempt entry into an affiliate network.

As your organization expands, how will you control the quality of your customers and clients? How will you keep fraud levels low? And how will you manage your reputation on a global stage? The Best Practice Approach will guide you through your decision-making process and help manage your reputation.

Editor’s note: This is a series from Dianna Koltz, director of best practices and email marketing at Memolink, Inc., on how to use business standards to combat online fraud

— Express your opinion, comment below.


  1. Great information Dianna. Increased awareness of fraud globally will help minimize this issue for all affiliates and networks. Hopefully with time and a worldwide support system, these problems can be overcome and managed more efficiently.

  2. It actually would have been interesting to learn form this person how CPA networks in China create fraudulent traffic and provide us with tools to identify these companies quick after they join us. We work so hard to find these sites in our network.

  3. It is difficult to eliminate all the fraud affiliates as there are really too much.

    All of the networks can just try their best to deal with this problem, aiming at decreasing the numbers of fraud so as to protect the Advertiser’s right.


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