Pace Lattin: Why Be Passionate About Fighting Fraud?
Note: If you haven’t already surmised from the title, this is a guest post by the very kind and knowledgeable Pace Lattin. Enjoy!
‘People ask me all the time why I care so much about fighting fraud. For those who have been following me for the last decade or so, you’ll know that it’s something close to my heart. From my first publication ADBUMb , which spent half the time exposing fraud issues, to my current studies and work in fraud prevention, I have always been close to finding and preventing fraud in interactive advertising. In my opinion, fraud in my industry is an issue that is one of the most serious issues facing our industry and needs to be addressed at all levels. Companies that ignore this issue, and think that they can succeed without taking proactive steps are making a big mistake that could cost them their both money and reputation.
Here are three simple reasons on why fraud should not be tolerated. Hopefully making it clear, simple and to the point will allow some companies to look at it in a different light, take note of what the issues are and perhaps make some changes.
1.) Fraud stifles industry growth. Some people think they can take “short cuts” and ignore requirements set by both the government and the companies they work with. While they might be getting the upper hand sometimes, the overall effect is mistrust in the industry. Worse than that, re-active solutions are created by those who have been defrauded, often hurting even the good guys. Perfect example is the online education industry that has set new strict standards for lead generation, because of all the issues generated by fraudulent and less-than-ethical lead generation firms.
2.) Fraud is a short term business. No business, except perhaps the Mafia, is successful on fraud. First of all, it’s not a business solution or a product. If you are smart enough to commit fraud and not get caught, I promise that you could make more money using that intelligence to really create a strong business model. On top of that, you’re eventually going to get caught and if enough attention is paid to you, you are going to end up paying the price. The time of “anything goes” in interactive advertising is gone. Regulatory and law enforcement agencies are actively looking for the bad guys in the industry.
3.) Fraud Hurts Small Businesses. If you think it’s harmless, think again. Tons of small businesses depend on interactive advertising. Similarly, if you are defrauding an advertising network, you could be causing great harm to their business. Perhaps you won’t be caught, but the network will be often left holding the bag, and lose clients, money and perhaps even their entire business. Many networks in this economy depend on the quick payment of their advertisers and one issue could shut them down for good. You’ll be hurting the owners of that business, their employees and their families.’
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