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Fraud Prevention in the Referral Program

Updated over a week ago

Loloyal’s built-in fraud detection system helps identify and block suspicious referral activity, reducing the risk of abuse and protecting the integrity of your rewards program.


When a Referral May Be Blocked

Loloyal automatically monitors for common signs of referral fraud. A referral may be blocked if it matches any high-risk patterns, including:

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  • High referral volume from the same IP address — more than 10 claims within 7 days.

  • Repeated use of the same email address to claim rewards.

If a referral is flagged as high-risk, it will be automatically blocked and appear in the Blocked section of your Loloyal Admin dashboard.


How Fraud Detection Works: "No Similar IP Addresses"

To stop users from gaming the system by creating multiple accounts on the same internet connection (e.g., home Wi-Fi or public networks), Loloyal uses IP detection to flag unusual patterns.

The fraud check is triggered when a referred user clicks “Claim now”, and may block the reward claim in two stages:

1. Email Submission

When a user enters their email to claim a reward, the system checks if their IP address has a suspicious activity history.

2. Claim Attempt Limit

If the same IP address clicks “Claim now” more than 10 times using the same referral link, all additional attempts will be blocked.

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IP-Based Verification Rules

  • IP Activity Within the Last 7 Days
    If the same IP address has made more than 10 claim attempts using a single referral link within a 7-day period, the 11th and onward will be blocked.

  • Applies Per Store + Referral Link
    This rule applies only within the same store and referral link combination.

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🔒 Note: IP-based limits are specific to each store. Claims made from the same IP on other stores will not be affected.


Common Questions

1. What happens if a user uses a new referral link?
Using a new referral link resets the IP claim limit. Each referral link has its own 10-attempt threshold, allowing a fresh set of attempts from the same IP.


2. Does placing an order affect the fraud check?
No, it doesn’t. Fraud checks are based on email submissions and claim attempts, not whether an order was placed.


3. Can a blocked IP still join other referral programs?
Yes. IP blocks are enforced per store and per referral link. So, if an IP is blocked in Store A, it can still join referral programs in Store B or use a different referral link within Store A.

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