Influencer Marketing Fraud Scams
Influencers can hold a certain amount of power when it comes to the promotion of products and services to the masses. They are often highly sought after, enabling them to capitalize on their popularity by promoting certain products or services through their social media presence or content. While these influencers provide viable marketing opportunities to businesses, the rise of “social media celebrities” opens up opportunities for scammers, who often use illegal marketing tactics to scam businesses out of money. These influencer marketing fraud scams are on the rise, and businesses must be aware of them in order to protect themselves from being taken advantage of.
What is Influencer Marketing Fraud?
Influencer marketing fraud is the illegal use of influencers to scam businesses out of money. It usually involves someone taking advantage of the large following an influencer has and the influence they may have on potential customers. This can be done through the use of deceptive advertising practices, phishing scams, link-injection, and other techniques that are used to promote a product or service without the consent of the business, who is then scammed out of money.
Types of Influencer Marketing Fraud
There are various types of influencer marketing fraud that businesses must be aware of in order to protect themselves. Some of the most common types of influencer marketing scams are:
Deceptive Advertising – In this type of scam, fake accounts are created by scammers to pretend to be legitimate influencers. They will then use deceptive practices to promote products, such as making false statements about the product’s authenticity or effectiveness, or even claiming to have had personal experience with the product themselves.
Phishing Scams – In a phishing scheme, scammers will create fake emails or messages that appear to be from the influencer themselves. The email will usually contain a link which, when clicked, will end up giving the scammers access to the business’s financial information or other sensitive data.
Link-Injection Scams – This type of scam occurs when scammers create fake blogs or websites that contain links to their product or service. They then use social media to post links to their site, using an influencer’s profile to give it credibility and make it more likely to be clicked on.
How to Spot Influencer Marketing Fraud
Though influencer marketing fraud takes many forms, there are a few common signs of a potential scam that businesses should be aware of. These include:
Unusually High Payment Requests – Legitimate influencers will not usually ask for large sums of money upfront. Be wary of any payment request that is far beyond what you consider reasonable for the amount of work to be done.
Promises of Instant Followers – Though it may be tempting to quickly boost your follower numbers, be aware that legitimate influencers will not usually be promising you instant success.
Suspect Behavior – If you encounter any suspicious behavior from an influencer, such as ignored emails or messages that seem out of character, it may be a sign that you’re dealing with a fraudster.
No Tracking or Reporting – Legitimate influencer marketing campaigns should involve regular reporting and tracking of views, likes, shares and other metrics, to ensure the influencer’s work is having an impact. If this is absent, it could be a sign that you’re dealing with a scam.
How to Protect Against Influencer Marketing Fraud
Here are some steps business can take to protect themselves from influencer marketing fraud:
Perform Background Checks – Before entering into any agreement with an influencer, take the time to do an extensive background check. This should include researching the influencer’s background, looking for any red flags and asking other businesses about their experience with the influencer.
Conduct Due Diligence – Whenever a large payment is involved, businesses should be performing due diligence checks. This means verifying the legitimacy of the influencer’s credentials, as well as any claims they have made about the effectiveness of the product.
Verify the Followers – It’s important to make sure that the influencer’s followers are genuine and active. There are various software tools available that can help you determine whether the followers are real or not.
Implement Contract Clauses – Include certain clauses in your contract, such as clauses outlining the terms and conditions of the agreement, a content approval process and a clause that allows for termination of the agreement should the influencer ignore certain terms or regulations.
Influencer marketing fraud is an unfortunate but reality of modern business. It’s important to be aware of the various types of fraud and how to spot them, as well as how to protect yourself from being taken advantage of. By conducting due diligence checks, verifying followers and implementing contract clauses, businesses can go a long way in protecting themselves from influencer marketing fraud.
