Foreign scammers are deceiving bargain-seeking Britons to steal millions of pounds from big-name brands.
Research has found Selfridges, Currys, JD Sports and ASOS are among 41 firms to have fallen victim to fraudulent affiliate marketing schemes.
The clever scam sees scammers – largely based in China, Pakistan and Ukraine – prey on genuine customers seeking voucher codes through Google.
Yet when the customer goes to click on a website seemingly offering them a discount, they are instead redirected to the retailer’s own page.
If they then end up buying goods from that link, the affiliate marketeer is paid a percentage of the sale as commission.
Marcode, a software firm dedicated to exposing online fraud, found 80 per cent of the UK’s top 50 gift-selling brands were targeted by the schemes in the second half of 2024.
Andy Cooney, co-founder of Marcode, said: ‘Many consumers will be surprised that they’re unwittingly playing a part in scams targeting some of the biggest high street brands.
‘Everyone loves to grab a bargain – and the rising cost of living has forced many people to look for ways to save money on their next purchase, especially in the run up to Christmas when loved ones expect a gift.
‘Often this can lead to consumers falling victim to an online scam set up by an affiliate marketing fraudster through a fake voucher code site.’
He added: ‘It’s a lose-lose situation for the consumer and the brand as the discount often never materialises and the brand pays out commissions unnecessarily, which chip away at their profits and distort online sales figures.
‘Unfortunately, this type of fraud will continue to thrive as all too often official affiliate marketing programmes accept fraudsters in as their processes for authentication are too lenient.’
Survey data shows 87 per cent of Brits have used an online voucher or coupon to claim a discount at least once.
Twenty-nine per cent of shoppers search for a discount code almost every time they make an online purchase.
This means that a significant proportion of British shoppers are having their searches for discount codes hijacked by fraudsters looking to scam top brands.
Companies often sell online using affiliate marketing programmes as a way to boost sales.
These schemes work by the participant, such as a reviewer or influencer, promoting a product and directing customers to the website with a special link, in return for a commission on the sales.
The global affiliate marketing industry is thought to be worth £13.4billion ($17bn), which is expected to rise to (£22.1billion) ($28bn) by 2027.
Scammers in Pakistan buy Google Ads to promote fake Currys discount vouchers
Fake voucher codes for Boden used to scam the brand out of affiliate marketing cash
However, these programmes are susceptible to abuse due to a lack of regulation, with Marcode estimating that £2.4bn ($3bn) is scammed through the schemes each year.
Scammers can get themselves to the top of search results by buying up Google Ads with keywords such as ‘discount’ and popular brand names to target consumers.
This also drives up the costs of ads for legitimate advertisers on the search engine.
Customers can also be left angry at brands after trying to use a discount code which does not work, and end up shopping somewhere else.
All of this activity occurs without the consumer or retailer being aware that they were tricked.