Affiliate marketing is designed to be a win-win strategy for both affiliates and brand owners. Yet, some affiliate marketers seek to beat the system and get commissions which they don’t really deserve. There are plenty of cheating techniques that brands have to fight with. And using counterfeit coupons is one of the most confusing tactics.
Fraudulent coupons may harm businesses in several ways: wasting marketing budget, reducing revenue, losing customer trust.
Fortunately, there are ways to spot and stop affiliates from using fraudulent coupons. For example, coupon codes monitoring tools. Just use automated brand tracking software to ensure affiliate rules compliance.
Let’s learn more about fraudulent coupons, the key risks of their use, and how to prevent brand abuse with affiliate compliance software.
What Are Fraudulent Coupons and Why Do They Matter?
Do you know how much fraudulent coupons cost companies? Inmar Intelligence estimates that counterfeit coupon fraud costs the retail industry over $100 million annually.
The fraud may develop in several ways:
Unauthorized coupons. These are real discount codes, but they’re shared or promoted without the company’s permission. For example, a brand might give a private code to email subscribers, but an affiliate posts it on a public coupon site to earn commissions. The brand ends up paying for sales that weren’t truly influenced by the affiliate.
Fake coupons. These are completely made-up codes that were never issued by the brand. They may promise unrealistic discounts or free products. Customers may try to use them, get frustrated when they don’t work, and lose trust in the brand.
As we’ve already mentioned, fraudulent coupons can significantly harm the brand’s finances and reputation. But that’s not the only outcomes of the problem:
• Skewed analytics. Coupon fraud creates “noise” in the data. It seems that sales are going, but it does not reflect the real return from marketing.
• Violation of affiliate program. Using coupons outside of authorized channels or without approval violates the rules of the affiliate program and can lead to internal conflicts and legal difficulties.
• Losing control. If a brand doesn't invest efforts into coupon codes monitoring, it leads to chaos. Promo codes end up in third-party databases, and customers use them outside of planned campaigns.
As you see, coupon compliance is a serious problem for businesses. That’s why promo code monitoring is a must, not an option.
Who Creates and Distributes Fake Coupons?
How do fraudulent coupons appear on coupon websites?
First, affiliates intentionally post promo codes to attract traffic and earn a commission. Users searching for discounts find these codes on coupon websites, enter them during checkout, and may complete a purchase. They give the affiliate credit for a sale they didn’t actually drive.
Secondly, coupons can “leak” as a result of employee errors, holes in the system, or be found in the site code. Some bots or scripts automatically scan pages for hidden or test coupons.
Also, customers themselves post working coupons on forums, communities, or coupon aggregators, not realizing that this violates brand terms and conditions or messes up affiliate analytics.
Finally, some dishonest coupon aggregator platforms create fraudulent coupons or random codes just to draw users to the site. This can lead to customer frustration and increased distrust of the brand.
Of all the violations, affiliate coupon fraud seems to be the most harmful. Unlike direct or paid channels, affiliate programs give commission for results. So any manipulation, like using fake or leaked coupons, directly affects the budget. Brands should take proactive actions and work on affiliate fraud prevention.
What’s more, affiliate fraud is hard to detect by manual monitoring. Marketers use special tactics to hide the violations. For example, day parting, targeting specific GEOs, devices, or browsers. That’s why some brands opt for automated affiliate rules compliance monitoring.
Key Risks of Counterfeit Coupons Use
We’ve already discussed some of the problems that violation of coupon compliance may cause. Now let’s break down key risks of fake coupon codes spread:
Margin leakage. When coupons are misused, businesses lose money because they sell the product at a greater discount than intended. Discounts should attract clients without wasting brand’s budgets. Otherwise, the whole marketing campaign loses its significance.
Example: A company launches a promotion with a 20% discount coupon for new customers. But due to the violations of affiliate rules compliance, regular customers who would have bought without the discount start using this coupon. The result is a loss of profit from a large number of orders.
Bluepear addresses this issue by providing real-time 24/7 monitoring and control over coupon code usage.
Wrongly attributed conversions. Violations of coupon compliance lead to mistakes in analytics. So, the brand can’t see the real picture and make well-informed decisions. Marketing budgets may be allocated to the channels which don’t perform effectively.
Example: A customer saw the brand's ad on Tiktok, became interested, went to the site, and put the product in the basket. Before paying, they found a coupon on some aggregator website, entered the code, and placed the order. As a result, the analysts consider the purchase was brought by the coupon site, and not Tiktok, which was actually the main source.
Bluepear prevents this by ensuring coupon compliance, so brands can trust their attribution data and optimize ad spend based on accurate performance metrics.
Traffic cannibalization. This happens when affiliate channels steal purchases that were originally coming from a more profitable channel, such as organic traffic.
Example: A user found the site through Google, read reviews, compared prices — and is ready to buy. But before paying, he decides to look for a discount, finds a coupon on a third-party site and uses it. As a result, the system considers that the sale was brought by the coupon channel, not organic search. Moreover, the business also pays an affiliate commission, although the buyer came on his own.
Bluepear tracks unauthorized coupon usage and brand bidding to stop unfair attribution and save you from paying extra commissions.
Damaged brand image. If discounts and coupons are used too often or become too accessible, it can damage the brand image. A brand, especially if it is positioned as quality or premium, should be careful with discounts. Constant coupons can undermine its value in the eyes of the customer.
Example: Buyers get used to the fact that “a normal price is when there is a discount.” They postpone the purchase, wait for promotions or believe that the brand is “not worth the money.” As a result, trust and the desire to pay the full price decrease.
Bluepear helps control where and how coupons appear online, protecting your brand’s reputation.
How to Prevent Coupon Compliance Violations
Here’s our step-by-step guide that will help you to ensure affiliate rules compliance:
1. Track and control coupon usage. As you see, promo code monitoring isn’t something to neglect. Regularly check where your promo codes show up and how they're being applied. Make sure they're reaching the right customers and not being misused or posted on unauthorized platforms.
2. Set clear affiliate program rules. Define exactly how partners can use your promo codes. Limit their use through expiration dates, caps, or traffic restrictions. This way, you can encourage affiliate rules compliance.
3. Perform coupon codes monitoring in real time. Don't wait until the end of a campaign to check performance — monitor activity in real time. That way, you can catch problems early and make quick decisions.
4. Use automated promo code monitoring tools. Violations tracking software can flag suspicious affiliate activity 24/7. For example, Bluepear checks your SERPs and coupons from different GEOs, devices, and browsers. The tool also sends real-time alerts and compiles reports with evidence of the promo abuse.
So, promotional code monitoring can be greatly enhanced by using automated tools.
Best Software for Coupon Compliance Monitoring
Choosing the right coupon codes monitoring tool is a key to protecting your margins and keeping partners in line. Here's what to look for and how to decide what fits your business best.
When evaluating software for coupon compliance, focus on three core features:
• Custom rules and permissions. You need flexible settings to define how, where, and by whom each promo code can be used.
• Real-time alerts. Instant notifications for suspicious activity (like traffic spikes or abnormal redemption rates) help you react before losses escalate.
• Integrations. The software should connect smoothly with your eCommerce platform, affiliate network, and analytics tools to give you full visibility.
What type of coupon code monitoring software to choose? There are two main paths:
• SaaS tools (Software-as-a-Service): These are plug-and-play platforms that offer out-of-the-box features like tracking dashboards, fraud detection, and rule management. Ideal for fast implementation and low maintenance.
• Custom solutions: Built specifically for your business needs, these can offer deeper integration, custom logic, and tailored workflows — but often require more time and resources to develop and manage.
If speed and ease of use matter most, go with SaaS. If you need precise control and deep customization, a custom-built solution might be worth the investment.
Real-World Case: How Brands Protect Coupon Compliance
Let’s see how ecommerce fraud strategies work in real life and how to prevent them.
An online fashion retailer launched a limited-time promo code intended for a closed email campaign targeting loyal customers. Within 48 hours, the code was picked up by several coupon-sharing websites and started circulating widely. Suddenly, sales surged — but so did discount-related losses.
They quickly stepped in by updating their coupon policy, adding tracking parameters to each code, and introducing usage restrictions tied to user IDs. On top of that, they activated real-time coupon code monitoring tools and set up alerts for unusual redemption behavior. Affiliates that violated the new rules were either warned or removed from the program.
The misuse was brought under control in just a few days. The brand successfully cut off unauthorized sources, preserving profit margins. Also, they improved their promo code monitoring to prevent similar issues in the future.
Summing Up
Affiliate coupon fraud is a serious threat to brand revenue and reputation. To stay ahead, brands should:
• Establish clear rules for affiliate promo code use/
• Track coupon activity across all channels, including unauthorized sites.
• Monitor usage in real time to catch suspicious behavior early.
• Use automated tools to detect and flag violations 24/7.
• Choose the right software — SaaS for speed and simplicity, or custom for flexibility and control.
