Alternating Current Potential Drop (ACPD) measurements are routinely used for monitoring crack length in laboratory based fatigue tests, and so measurements will be taken on components which are exposed to cyclic dynamic stresses. It has been empirically observed that cyclic stresses cause a strong increase (above 10% is shown in this paper) in measured resistance that is both AC inspection frequency and loading frequency dependent. The excess resistance will result in erroneous measurements; this paper investigates the cause and provides recommendations to limit the influence. Applied stresses influence ACPD measurements through the magnetoelastic effect; elastic strain induces magnetization in ferromagnetic materials, which in turn influences the magnetic permeability and therefore skin depth. Further, it has recently been realised that cyclic magnetization results in a frequency dependent concentration of the magnetic flux at the surface of the component, and consequently a non-uniform spatial distribution of magnetic permeability. In this study it is found that the interaction between the non-uniform spatial distribution of both the current density and magnetic permeability results in significant non-linear modulation of the measurement signal. A combination of finite element simulations and experimental results are used to explore this phenomenon.