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Ah screw the fraud problems. Mostly easy to spot and they do not try to hit ccbill revshare type programs that often.
The bigger downsides are that they require shitloads of time and resources. Then you will find out 8 out of 10 of them will be entirely useless and use up 80%+ of all your time and resources. They also will be the ones who will be demanding new tools and everything else all of the time, not to mention they will be the first to flame you on the boards when they sent 300 hits over the course of a month and did not get a sign up.
They also seem to know when you are sleeping, away, or anything else that does not involve sitting at your computer waiting for their ICQ message to light up your screen. If you do not answer within a few minutes, well you suck and so does your crappy ass unprofessional program.
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