Understanding Freebie Bots: How Automated Tools Affect Retailers and Consumers

Freebie bots represent a growing technological threat to online retailers, leveraging automation to exploit pricing errors and secure products at minimal or zero cost. These tools differ from traditional scalper bots by targeting any item with potential resale value, not just high-demand goods. According to Kasada, freebie bots are a mix of scraper and scalper bots that use similar communities and technology, making them difficult to detect and easy to access. Unlike scalpers who focus on items where demand exceeds supply, freebie bots target any product that could be resold on secondary marketplaces such as Amazon, eBay, and Facebook Marketplace. This includes items priced incorrectly due to human error, such as misplaced decimals or copy-and-paste mistakes.

The operational scope of freebie bots is extensive. In October and November 2022, the Kasada Threat Intelligence Team observed freebie bots targeting over 250 retail companies. During this period, these bots generated more than 7 million daily messages within freebie communities. One specific community secured nearly 100,000 products with a combined retail value of $3.4 million, yet the bot operators spent only $882 in total. Top items purchased included an off-brand sleeveless halter neck mini dress, a 2020 MacBook Air laptop, and a deep cleansing facial mask.

During the Cyber Five holiday sales weekend (Thanksgiving through Cyber Monday), freebie bot activity increased significantly. The reseller arbitrage gap—the difference between purchase price and resale price—widens during holiday sales, creating greater financial incentives for bot operators. These bots constantly search for the highest discounts, typically between 70% and 100% off.

How Freebie Bots Operate

Freebie bots function by scanning retail websites for pricing errors or extreme discounts. When a pricing error occurs, the bot automatically purchases the item before the retailer can correct the mistake. This automation happens at speeds that human shoppers cannot match. The Kasada report notes that the automated nature of freebie bots makes it nearly impossible for online companies to keep pace with the speed of these attacks.

The technology behind freebie bots uses stealth techniques similar to those employed by Grinch Bots to evade detection. This makes them increasingly difficult for retailers and eCommerce providers to identify and stop. Bot operators can even sell freebie bot services to others who want to acquire merchandise for free, creating a secondary market for these tools.

Impact on Retailers

Freebie bots create three critical problems for retailers:

  • Revenue loss: Retailers suffer direct financial losses when they fulfill orders placed by freebie bots. Companies typically honor pricing mistakes to maintain customer trust, resulting in items being sold at a loss.
  • Poor user experience: Legitimate customers face negative experiences due to freebie bots. Products become out of stock, and websites experience slow performance from the high volume of bot traffic. This leads to brand and reputational damage.
  • Added operational costs: The heavy traffic from freebie bots forces retailers to invest in stronger site architecture to prevent crashes and maintain availability for regular shoppers.

Sam Crowther, founder of Kasada, stated, "Retailers are already facing pressures this holiday season due to inflation and the annual recurrence of Grinch Bots. Adding Freebie Bots to the mix gives retailers another headache to deal with, one that directly hits their revenues, as they’re compelled to fulfill orders made with pricing errors."

Freebie Bot Communities and Services

Freebie bot communities operate through platforms like Discord. These communities share information about pricing errors and automated purchasing opportunities. One example documented in the source material involves a Discord bot that posts information about free games from Reddit posts. The bot requires permissions to read messages, send messages, read message history, and create a text channel named "freebie-bot."

Users can add the bot to their Discord server using a provided link. The bot then automatically sends messages about freebies from the /r/GameDeals subreddit. For those concerned about permissions, the bot creator recommends manually creating the channel instead of granting the bot permission to modify channels.

Some communities offer freebie bots as a service. According to user reviews on a platform called Whop, one freebie bot service called Frozen Freebies has generated significant results for users. One user reported saving $35,000 on Amazon purchases using the bot. Another user claimed to have acquired over $125,000 worth of freebies in less than six months, with over 2,200 checkouts. These reviews suggest that users can achieve substantial savings, though such claims should be viewed with appropriate skepticism given the lack of independent verification.

Risks and Ethical Considerations for Consumers

While freebie bots offer apparent benefits to users, there are significant risks and ethical concerns:

Account Bans

Amazon and other retailers maintain strict policies against bot usage. If detected, users risk having their accounts permanently banned. This means losing access to purchase history, wish lists, and any digital content associated with the account.

Market Manipulation

The use of bots creates artificial scarcity and can contribute to price inflation. When bots purchase large quantities of items through pricing errors, legitimate consumers lose access to those products. This creates an uneven playing field in the marketplace.

Security Concerns

Downloading and using bots from unverified sources exposes users to potential malware and data breaches. Many freebie bots require access to Discord servers and may request permissions that could compromise user security.

Ethical Shopping Implications

The use of automated tools raises questions about fairness. While retailers make pricing errors, using bots to exploit these mistakes at scale prevents other consumers from benefiting from legitimate sales or corrections.

Best Practices for Bot Operators

According to source material discussing Amazon freebie bots, users who choose to employ these tools should follow certain practices to mitigate risks:

  • Research: Users should investigate a bot's reputation and read user reviews before selecting a tool. This helps ensure reliability and security.
  • Use Proxies: Configuring bots to use proxies can help mask IP addresses, potentially reducing the risk of account bans.
  • Monitor Account Activity: Users should watch for unusual activity in their accounts or warnings from retailers regarding bot usage.
  • Stay Informed: Joining communities and forums where users share experiences, tips, and strategies can provide valuable information.

Detection and Prevention Challenges

Freebie bots present significant detection challenges for retailers. They inherit stealth techniques from other bot types and operate with high speed. The Kasada report emphasizes that preventing freebie bots from gaining access in the first place is the most effective strategy, as this would significantly reduce costs associated with processing fraudulent orders and handling infrastructure demands.

Retailers need anti-bot solutions that can identify automation at its source and adapt quickly as bot operators evolve their tactics. However, the low cost of designing and operating these bots means they remain accessible to many individuals and communities.

Economic Impact

The financial scale of freebie bot operations is substantial. The $3.4 million in retail value secured by one community for only $882 demonstrates the extreme disparity between actual cost and retail value. This represents a direct loss to retailers who must absorb the cost of fulfilled orders.

Additionally, retailers face increased infrastructure expenses to maintain site performance during bot attacks. The need to handle millions of automated requests without crashing requires significant investment in site architecture and security measures.

Conclusion

Freebie bots represent a complex challenge at the intersection of technology, retail operations, and consumer ethics. While they offer users the potential for significant savings, they create substantial problems for retailers, including revenue loss, poor customer experiences, and increased operational costs. The tools operate with increasing sophistication, making detection and prevention difficult for online businesses.

For consumers, the use of freebie bots carries risks including account bans, security vulnerabilities, and ethical concerns about market manipulation. The information available suggests that while some users achieve substantial savings, the practice exists in a gray area that violates retailer terms of service and may have broader negative impacts on the shopping ecosystem.

Sources

  1. Kasada: Freebie Bots - The Latest Threat to Retailers
  2. GitHub: Freebie Bot by arnor-nolen
  3. Whop: Frozen Freebies Reviews
  4. Medium: Understanding Amazon Freebie and Discount Bots

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