I blogged about this in May but forgot to post it here.
More good info.
Phony Affiliates Prevention Guide for Managers
"After all your efforts around affiliate recruiting you should have listings on directories, in social networks, forums and through your network of friends and industry experts. You will also (or should have) affiliates clamoring at your door to get into your program. Now comes the make or break opportunity, who to let in and who to keep away from your affiliate program.
Affiliate marketing is prone to fraud due to the lack of quality management, unsophisticated tracking systems, invisible affiliates and the basic principals around your links and pixels. It is the affiliate managers job to follow through with due diligence and screen out the bad from the big fish.
More..."