With revenue loss in the US reaching $89B due to promo fraud, it’s time to take action and protect your online promo program.

Promo code abuse takes many forms. Abusers may share codes publicly, stack codes, exploit loopholes, manipulate promos, or use automated tools to generate or duplicate codes. This abuse can lead to lost revenue and damage to brand reputation.

Pro Insight is a worldwide identity verification service that empowers organizations to evaluate identity risks, authorize legitimate transactions, and conduct global-scale fraud investigations in real time.

With distinct search methods, intuitive administrative tools, machine learning-powered analytics and seamless workflow integration, Pro Insight prevents promo abuse and delivers a user-friendly experience.

What is Promo Code Abuse?

The widespread misuse of promo codes can strike any business seeking a customer base or reward redemption. Abusers have devised successful ways to exploit the structure of the promo code system, fraudulently gaining multiple discounts or unwarranted offers.

These cybercrime practices include:

  • Sharing codes on social media, coupon websites or forums allowing illicit use of the offer
  • Stacking multiple codes in a single transaction for deeper discounts than intended
  • Exploiting loopholes such as hacking in expired codes, manipulating usage limits and bypassing eligibility
  • Reselling or trading promo or coupon codes for personal gain
  • Utilizing automated tools or techniques to generate or duplicate promo codes to bypass restrictions

How does promo code abuse impact businesses?

Promo code abuse can lead to lost revenue and damage to brand reputation

Promo code abuse creates several immediate problems:

  • Reduces revenue, erodes profit margins, and undermines promotional campaigns’ profitability.
  • Poor experience for loyal customers can lead to loss of trust and resentment.
  • Dilutes incentivization and disrupts marketing strategies. Detection and addressing abuse diverts resources and raises overhead costs.

Various long-term challenges stemming from promo code abuse:

  • Misleading customer acquisition metrics distorts visibility into the actual customer base.
  • Campaigns underperform on expected ROI. Fake accounts exploit new customer perks, misrepresenting the cost per new customer and clouding decision-making for future campaigns.
  • Continual fraud depletes inventory, negatively impact loyal customer experience.

Is promo code abuse that big of an issue?

ecommerce fraud prevention and customer experience


  • 49% of ecommerce businesses have experienced increased promo code abuse since 2020.
  • Loss from direct and indirect loyalty program fraud is estimated at $1B annually.
  • In Southeast Asia alone, 75% of surveyed organizations admit fraud moderately to significantly financially impacts their businesses.
  • Companies that have experienced promo fraud abuse report a loss of 31% of their annual marketing spending.

Don’t let fraud diminish your promotional power

Pro Insight helps prevent promo code abuse

Pro Insight empowers organizations to evaluate identity risk, approve legitimate transactions and investigate fraud at a global level.

At the heart of Pro Insight is Identity Review, a search feature providing a real-time comprehensive view of the identity linked to a transaction. These identity verification solutions crosscheck the five core digital data attributes: name, email, phone, address and IP.

Key Features of Pro Insight:

  • Identity Risk Score –The global Identity Risk Score provides an intuitive scannable look at a transaction’s probability of risk or fraudulent use.
  • Actionable Signals – Analyze the Identity Risk Score for actionable risk signal metadata and data matches.
  • Network Risk – Determine how a customer’s five identity elements are being used online: when they were first seen together, combinations of use, rate of use and associations.
  • Distance Calculation Map – An interactive map visualizes distance between locations, such as IP addresses, shipping addresses, and billing addresses.

Benefits of Pro Insight:

  • Increase productivity – A unified cross-border solution that provides a comprehensive view of the applicant’s identity.
  • Improve customer satisfaction – Accelerate onboarding for good customers confidently, helping reduce false-positive rates and improve customer experience and loyalty.
  • Fight fraud – The power of machine learning analyzes data, detects inconsistencies, and flags warnings to determine risk scores in real time.
  • Flexible access – With a click you can view complete Identity Review results for any transaction from any platform.
  • Enterprise capabilities – Scalability offers large businesses a wide range of features, including single sign-on (SSO), dedicated support, enhanced security, intuitive UX and advanced analytics
  • Reporting and analytics – View detailed reports on usage, users and coverage in graph or list view.

Benefits of using Pro Insight to prevent promo code abuse

Enhanced fraud detection accuracy

Pro Insight’s advanced algorithms and machine learning models analyze and cross-reference data to accurately detect abuse. Analyzing real-time code usage data and behavioral data identifies unusual patterns, excessive code usage, and potential fraud hotspots. The machine learning system continually learns from historical data, improving its detection capabilities.

Cost savings

Credit card fraud prevention safeguards budgets and improves business profit margins. It also enhances customer trust, streamlines operations, and ensures promotions benefit genuine customers, leading to savings and long-term value.

Improved customer experience

Pro Insight guarantees a fair and secure environment for genuine customers by accurately detecting and flagging instances of promo code abuse. Safe promotions create a positive experience, reinforcing customer trust and loyalty while maintaining the integrity of the campaigns.

With Pro Insight’s advanced algorithms and machine learning-powered analytics, businesses can confidently provide genuine customers with the full advantages of what promo codes offer, fostering a rewarding and enjoyable customer journey.

Streamlined operations

Pro Insight automates fraud prevention services, empowering businesses to concentrate on core operations. Utilizing advanced algorithms and machine learning models; Pro Insight efficiently detects and addresses instances of promo code abuse without manual review. This automated approach allows businesses to focus product development, customer service and marketing strategies.

Take control of your promo power


All fun and games until the scammers show up

Learn how Transaction Risk API changed fraud detection for Lazada in the Indonesian market, delivering exceptional results with a 243% ROI and 90% fraud detection precision.

Trusted by over 2,000 Customers Worldwide

Promo Abuse isn’t going anywhere

Promo code abuse can have severe consequences for businesses, including unauthorized discount losses and disrupted pricing strategies, strained customer relationships, eroded trust and devaluing value of promotional campaigns. Operational complexity increases as resources and time are diverted to detect and address abuse, driving up overhead costs.

To counter these challenges, businesses must implement a fraud prevention solution like Pro Insight. With advanced algorithms and machine learning models, Pro Insight accurately identifies and flags instances of promo code abuse, providing actionable insights to protect businesses from fraudulent transactions.

Pro Insight allows businesses to focus on core operations, automating prevention and preserving the integrity of promotional campaigns.


Contact us today to protect your promotions with Pro Insight.