Fraudlogix, a company located in Israel & the United States claims to be the new best thing in affiliate fraud detection. Their website claims that they are extensively funded, that their system is one of the fastest growing affiliate fraud prevention companies in the world with several rounds of private equity They are advertising on several affiliate publications and pushing themselves as a one-stop system to prevent affiliate fraud. As anyone in the affiliate marketing industry knows, fraud is a growing problem and many networks are desperate to learn more about how to prevent fraud, so any company with a real solution could make quite a bit of money. However, when examining this company from the outside the company itself seems suspicious and has a high rating on my personal fraud detection calculator.
Whenever I look at a new company, I try to examine as much about the companys background as I can. Its the same techniques that I ask advertising and affiliate networks to employ when determining who to do business with. While I am not going to accuse fraudlogix.com of being a fraud itself, it fails several steps in determining the legitimacy of a company. Most of these techniques arent courtroom proof, but instead warning signs that a company may not be what it seems.
Check the Domain Registration
Always check the domain registration of the company you are doing business with that it at least matches what they claim on the website. This helps to make sure that there is basic legitimacy. If a company claims to be in New York City, but their registration goes back to a registrar in China, you should be really suspecious. In the case of Fraudlogix.com, the registration is anonymous. This makes no sense for a real company to have an anonymous registration, especially in the fraud industry where any company will tell you that step #1 always has to do with domain registration. Why would a fraud prevention company hide their domain registration?
Check Contact information on the Website for Verification.
Fraudlogix.com claims on their website Were a privately held company with offices in the US and Israel. According to their website their address here in the United States is 1835 E. Hallandale bch blvd suite #723, Hallandale Beach, FL 33009. That is also the address of MailBoxes etc, and the registered address of dozens of companies that use it to get mail. This really is suspicious to any investigator when looking at companies, especially when looking at the Fraudlogix, one of the fastest growing affiliate fraud prevention companies in the world. Why would a company that claims to have major investors, claims to be a major player in the industry have all their mail going back to a post office box and hide their office in the United States.
Google about the Company.
Always check the information a company gives you with public records. If a company tells you that they are well known in the industry, google their name and see what comes up. Remember that Fraudlogix claims to be one of the fastest growing affiliate fraud prevention companies in the world. However a simple google search of the company shows that there is NOTHING whatsoever written about the company, let alone links going to the site except the basic domain information (pageworth, realtimeblacklists). Despite trying really hard, there is not a single REVIEW of this system anywhere, on any single website about affiliate marketing. There is also NOTHING on Linkedin about the company (as of this writing) , nor could I find anyone in our industry who knows who this company is. In fact, their own website says nothing about the company, its officers or anything that would install trust in a company that is claiming to be involved in fraud detection.
Check Business Registration
The company FraudLogix Inc does not exist in the State of Florida. This corporation has no existence whatsoever in the state of Florida. However, the fictious name registration FRAUD LOGIX does exist, and registered to RedBranch Inc, which is owned by Hagai Schecter, who is best known to his connection with OptionsMedia Group (his emailed bounced when I asked for comment) : 184.108.40.206 does not like recipient. Remote host said: 550 5.1.1 User unknown Giving up on 220.127.116.11. Note that FraudLogix, was only registered in August of 2010.
Please note, in most states it is ILLEGAL to use INC for a fictious name, altough in Florida with all the lax business laws, its possible this is legal.
Is Fraudlogix a fraud itself? PROBABLY NOT. I want to make that really clear, I am not calling this company a fraud. They are strectching the truth quite a bit about their company, but thats probably it.
Still, they are claiming to be one of the largest fraud detection companies in the world and at the same time the very company existence is under scrutiny. If a company is in fraud detection, it needs to be completely above board, everything about the company needs to be able to be examined publically by anyone who wants to know about them. There is no excuse for a company trying to enter fraud detection to have this many possible problems at first view. When I go to the website, I should be able to see everything about the company, from the officers of the company, their backgrounds, what expertise they have in the industry. We should be asking these questions of all partners we do business with, agencies, marketers, serving companies and if any of them showed these issues, Id not do business with them.
I look forward to hearing back from Fraudlogix about their company, what they are doing and answering some questions hopefully my next post about them will be positive and in the right direction. How the respond moving forward will make a huge difference on how we judge them as an industry.
This article is purely my opinion on the initial viewing of FraudLogix. I invite them to respond to my request to review the product