Glossary

What is promo abuse?

Promo abuse is the use of discount codes, coupons, first-order offers, free shipping or referral credits in ways the promotion's terms forbid, most often by opening new accounts to get a "new customer" deal again and again. It hits e-commerce, delivery apps and subscriptions. Kavra links the accounts behind repeat redemptions at signup and checkout.

What promo abuse means

Every promotion has a rule about who gets it: new customers only, one per household, one per order, members only. Promo abuse is any pattern that breaks that rule on purpose while hiding that it does. The most common version is simple. A shopper, or a reseller, creates a fresh account with a new email for every order, so the 20% first-order code applies every time.

At larger scale it is organized. Groups share working codes and step-by-step guides in forums and chat channels, and some sell "fresh accounts" preloaded with credits. Resellers use scripts to create accounts in bulk and buy discounted stock to resell at full price. The customer that marketing thinks it acquired a hundred times is one person.

Common forms of promo abuse

FormHow it worksWhere it hits
New-account discount farmingA new email, and often a new card, for each first-order codeOnline stores, meal kits, delivery
Referral self-dealingOne person refers their own fake accounts to collect both rewardsApps with give-and-get referral credits
Code stackingCombining codes the terms say cannot be combined, through checkout bugs or scriptsStores with many overlapping campaigns
Leaked private codesSingle-use or influencer codes shared publicly and redeemed by thousandsAny brand running targeted offers
Reseller bulk buyingDiscounted limits bypassed across many accounts, stock resoldLimited drops, electronics, sneakers

How promo abuse shows up and why it matters

In the data it looks like success at first: a campaign with strong new-customer numbers and low cost per order. The cracks appear later. Repeat purchase rates for those customers are near zero, many orders ship to the same few addresses or lockers, and the "new" accounts share devices, networks or payment cards. Some shops only notice when stock of a promoted item runs out in hours.

The cost is more than the discount. Abused promotions raise acquisition costs, give margin to resellers instead of customers, and make marketing teams cut offers that would have worked for real buyers.

  • Several new accounts redeeming the same offer from one device or network.
  • Email addresses that follow a pattern or use aliases of one inbox.
  • Orders from different names sent to one address or pickup point.
  • Account creation, code entry and checkout completed in seconds, often by script.

Promo abuse vs bonus abuse

Promo abuse

  • Discount codes, coupons, free shipping, first-order deals
  • Value taken as a lower price or free goods
  • E-commerce, delivery, subscriptions, travel
  • Stopped at account creation and checkout

Bonus abuse

  • Deposit bonuses, free bets, spins, signup cash
  • Value withdrawn as balance or cash
  • iGaming, fintech, crypto
  • Stopped at signup, bonus claim and withdrawal

How to prevent promo abuse

Email checks and one-code-per-account rules are easy to get around because accounts are cheap. What is expensive for abusers is a truly new device, network and behavior for every order. Kavra links accounts that share those, even behind spoofed browsers and residential proxies, so you can keep the discount for real new customers and decline or review the repeat redemptions. The full playbook is on the bonus and promo abuse prevention page, with context for e-commerce and retail. The underlying technique is multi-accounting; for the gambling-side cousin, see bonus abuse.

FAQ

Frequently asked questions

Something else? Talk to our team.

Is using multiple accounts for discounts illegal?

In most places it is not a crime by itself, but it breaks the store's terms, and the store can cancel orders, close accounts and claw back credits. It can cross into fraud when it involves fake identities, stolen payment cards or reselling goods obtained through deception at scale.

How do stores know you already used a first-order discount?

Beyond the email address, stores compare the device, browser, network, payment card, shipping address and phone number of new accounts with existing ones. A new email on a known device that ships to a known address is easy to connect, which is why first-order codes often fail for repeat customers.

What is referral abuse?

Referral abuse is when someone refers accounts they control, or recruits fake sign-ups, to collect the reward a referral program pays for bringing in real new customers. Signs include chains of referrals from one device or network, referred accounts that never use the product, and rewards cashed out right away.

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