GLOSSARY OF TERMS

Lead generation fraud

What is lead generation fraud?

The term “lead generation fraud” refers to dishonest practices where a lead provider misrepresents how a lead was obtained. This type of fraud occurs when the seller either falsifies or conceals crucial details about the lead creation process, such as authenticity, source, age, offer presentation, or the data that was collected. 

Such misrepresentations can significantly reduce lead quality, inflate costs, and harm your marketing and sales efforts. By understanding what lead generation fraud is, businesses can avoid paying premium prices for low-value, falsified, or non-compliant leads.

Why lead generation fraud happens

Lead sellers can profit by offering cheaper, lower-quality data while presenting it as premium, real-time opt-in leads. Many fraudulent practices often go unnoticed because buyers cannot directly verify key details, such as:

  • What the consumer saw
  • How consent was obtained
  • When the lead was submitted
  • Where the lead originated

Even reputable partners may inadvertently purchase leads from sources that engage in these deceptive tactics.

How to protect your business from lead generation fraud

Lead generation fraud can lead to high costs, including wasted budgets, low conversion rates, and compliance risks. Therefore, the most effective way to protect yourself is through verification. You should be able to validate the following:

  • The exact time and location where a lead was collected
  • The form and consent disclosures presented to the consumer
  • The authenticity of the data submitted

This measure safeguards you against typical forms of lead generation fraud. These include fake submissions from bots, the reuse of old data, and traffic sources that are not what they seem.

Discover how to protect your business from lead generation fraud