Make Fraud Detection Actionable
Make Fraud Detection Actionable
Learn How to Implement & Improve Your Marketing ROI
The moments after the Oxford Biochronometrics ’ fraud detection tag has been added to a client’s B2C website(s) a clear fraud picture emerges and by simply looking at those numbers we again ask ourselves the question: “How can it be that it took so long that someone started asking questions and acted accordingly?” In this case the client’s #1 revenue channel is their website and it had ~25% of fraudulent paid traffic. Of course this paid traffic has a variety of fraud, mainly fraudulent clicks, fraudulent stuffed leads, fraudulent digital sales, etc. which is fully blended within the human audience.
Knowing your business and the predicted outcomes and expectations of your digital marketing program might probably raise this question:
“How much does this click and lead generation fraud affect my ROI and the CAC (customer acquisition costs) and its payback time?”
Or,
“Could this be the reason why our digital marketing campaigns have been performing worse than expected?”
Or, in worst case,
“Is this the reason why our legal department receives that many TCPA demand letters?”
How to make fraud detection actionable?
How can you make fraud detection actionable in order to improve your ROI, lower the CAC and mitigate litigation risk?
1. At the (strategical) macro level:
Is your digital marketing program both effective and efficient based on its ROI?
Does your digital marketing program expose litigation risks to your company?
Is your digital advertising CAC, and your total CAC, ie. including all marketing and sales expenses, way too high? And what is the associated payback time in months? Unrealistic? How on earth can you lower these?
Answering and addressing the questions above will create a sustainable competitive advantage.
2. At the (tactical) meso level:
Which digital channels or campaigns are driving conversion and contribute to the ROI?
Which digital channels or campaigns require improvement? More budget? Or need to be removed entirely? See also [6]
Which digital channels or campaigns expose the company to e.g. TCPA litigation risks?
Periodically benchmark different real-time feedback fraud detection vendors, e.g. using A/B testing. This should answer which vendor flags fraud and fraud only! See also [5]
Answering the questions above will make your digital marketing program more efficient and thus more profitable by identifying and removing the poor performing parts. It also identifies where the TCPA litigation risks originate from.
3. At the (operational) micro level:
Continuously monitor your campaigns and traffic sources using real-time feedback fraud detection.
The fraud detection provides invaluable information at the exact moment you need it.
This enables you to know the fraud status prior to making the call and thus prevents you from calling a prospect who didn’t consent to be contacted.
This avoids the risk of receiving TCPA demand letters and thus a costly settlements.
Fraud detection prevents you paying for fraudulent affiliate fees, and fraudulent clicks, the saved money can be spend on your intended human audience.
Besides the fraud status also collect: Where did this click or lead originate from. Did the caller pick up the phone and denied to have consented?
A positive side effect of fraud detection is that the quality of your campaign data improves and over time you’ll get a clearer picture on how your intended audience responded to your campaigns.
Of course, fraud detection is only one reason why digital campaigns are performing sub-optimal. Though, you have to agree it is a large reason and if not dealt with it will flourish and thus seriously affect your business outcome, increase your CAC, murk your view on which campaigns work, which audiences did respond, etc.
If your #1 revenue stream is through digital advertising and converting clicks to leads and customers the negative effects of fraud and the associated risks can be enormous. In many cases new Oxford Biochronometrics clients already use some sort of fraud detection. This can be IP address reputation scoring which typically flag data centers, TOR and VPN exit points, but not residential proxies running on consumer devices [1]. In other cases they use vendors which are able to flag bots and browser automation, but not human operated fraud.
Human operated fraud is able to fully recreate a lead’s path and the form data would checkout with verification services, and the behavior at your landing pages is not ‘robotic' or 'static’ but just like any human would interact. This sophisticated humanoid fraud is low in frequency but has a high impact in terms of litigation risk and the associated settlements. To reassure you Oxford Biochronometrics is able to flag this type of sophisticated human operated fraud, in real-time.
Figure 1 shows that fraudulent clicks will cost you a dollar, maybe a few dollars, per click. Lead generation fraud is more costly, but also happens at a lower frequency. TCPA claims are way more costly at a bare minimum of $500 per settlement. Having made too much calls based on fraudulent generated leads will cost you a fortune or even worse a class action is started and if certified you will have a serious problem.
That’s why you will have to safeguard and continuous monitor your #1 revenue stream by including a real-time fraud detection. On a side note you should also include proof of consent in order to protect you in the event of litigation, see [2][3][4]. These two measurements will drastically boost your marketing ROI and mitigate litigation risks at a fraction of the costs.
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