Lead generation fraud is a common problem in the industry. It occurs when a malicious publisher uses bot traffic to submit fraudulent leads that are sourced from illegitimate sources or stolen/recycled legitimate information.

The supply chain for lead generation is complex, with a number of layers built between the point that a lead reaches an advertiser and the time that it reaches a sales team. This can create opportunities for bad actors to commit fraud at any stage of the process.

Content: A lead can be generated through a variety of methods that include filling out an application, submitting contact details in exchange for a coupon or download, or sharing information through social media. This data is then used to build a prospect list or buyer persona.

Detecting and Preventing Lead Generation Fraud: Best Practices for Protecting Your Business and Your Reputation

Outbound: Some of the more common outbound methods are email marketing, SMS campaigns and social media advertising. These are effective ways to reach potential customers.

Telemarketing: You might get a call or a letter from someone you don’t know, promoting their product. The majority of these calls are from telemarketers, who purchase their leads or prospect calling lists from “lead brokers.”

Aggregators: These are companies that buy and sell a large volume of leads for clients at a fixed price per lead. They often work with multiple affiliate and sub-affiliate networks to source a large pool of leads and then pass them along to their clients.

Some of these lead aggregators also act as a middleman between the client and the affiliate and sub-affiliate networks, helping to ensure a high quality of lead while cutting costs on behalf of their client. This can be an important step in ensuring that the quality of the leads provided is consistent across different sources and channels, which helps to reduce fraud.