INCOMING: FBI probing negative option bank fraud schemes

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Rogue affiliates get attracted to the negative option campaigns that offer $30-50 CPA (cost per acquisition) bounties per free-trial credit card submit.

In order to maximize their returns, rogue affiliates cloak Facebook, Instagram, and Google to get their fake news sites live promoting the negative options scams.

Unwary consumers see stars endorsing the advertiser’s product, fall for the fake news, and then make the mistake of signing up for a free trial.

The affiliate collects on the CPA and the advertiser manages by the metrics, using sophisticated CRM software to calibrate the rebill % minus any refunds/chargebacks.  It becomes a game of math.

Step 6:  The advertiser signs up for chargeback mitigation services to win as many chargebacks as possible.

Step 7:  The advertiser gets more MIDs, balances more transactions, and fly’s below the radar.   By utilizing a number of organizations designed to manage these processes the advertiser, whom thinks they are king temporarily, grows their trial practice.