My thoughts??

1) Wrong Forum... should have been "eCommerce/Development"
2) If you are running PAP for your affiliate program, I would review and possibly update your Policy, looking for gaps in your logic and recourse in order to prevent situations like this as well as provide recourse for you to pursue whenever it becomes necessary.
3) If you are not using PAP, I would install it immediately and be as professional as possible without much real strain and without cost (other than personal time to implement).
4) Get back to square one in developing a Marketing Plan for your website/affiliate program......be selective, and expect a greater ROI based on your selectivity and solid strategy.

Think. Plan. Implement.
Repeat.

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