Ticket scalping involves purchasing event tickets in large numbers to resell at a higher price. Ticket scalping can be considered ticket fraud because the ticket prices are sold at a value higher than the price printed on the ticket.
For example, ticket scalping bots might purchase 25% of the tickets for a concert or sports event for $100 each. Instead of selling them at the printed face value, the event tickets are sold in secondary markets for $150. The inflated prices can make it unaffordable for genuine fans.
Although there are no federal regulations preventing ticket scalping and ticket fraud, many states do have laws in place that prohibit selling a ticket at a price higher than the face value. The National Association of Ticket Brokers outlines that 31 states have scalping legislation in place, ranging from the restriction of ticketing bots to the prevention of resale at a higher value.
It’s also important to note that many ticketing platforms also have preventions in place to avoid ticket scalping work. Reputable ticketing websites, like Ticketmaster, limit purchase quantity and the reselling price to prevent scalping work.
Scalping bot attacks can take on a few different forms. Let’s explore the common types of scalping bots you might encounter:
Using bots gives scalping and ticket fraud individuals an advantage during ticket sales periods. For example, a bot could purchase hundreds of tickets at once using different accounts, but you might be limited in your purchase quantity.
The ticketing industry and exchange commission have tried to prevent ticket scalping and ticket fraud; however, it has become increasingly difficult due to bots. Here are some strategies to prevent ticket scalping:
Using a dynamic pricing strategy adjusts ticket prices based on demand, purchase date, and event date. This approach can deter scalpers from using a similar strategy to inflate ticket prices. For example, the ticket buyer might watch a reputable platform to buy prices at a discount rather than purchasing through a third party. Event organizers have control over pricing when they list tickets on online ticket sales platforms.
Another way to deter ticket scalping is to limit purchase quantities. For example, an event organizer might limit the number of tickets available to prevent bots from purchasing hundreds of tickets. However, this strategy can fall short when ticket bots purchase tickets through dozens of accounts.
Implementing anti-bot software can deter bot use. For one, you can use a captcha to detect and prevent bots. In addition, many websites and software programs have the ability to track IP addresses and block certain addresses from purchasing large quantities of tickets.
A relatively simple strategy to prevent ticket scalping is to require account registration prior to purchasing tickets. Many bots don’t have the capabilities to go through the account verification process. Furthermore, you can add another layer of prevention by requiring identification each time the account is logged into.
One weakness of many ticketing platforms is delivery. Ticket fraudsters might not use scalping, but they may try to gain access to already purchased tickets. All tickets should be delivered using a method that requires authentication to access. For example, a mobile ticket with a personal QR code. This lowers the risk of ticket duplication and reselling to enhance security.
Summary
Promo abuse (also referred to as promotion abuse) occurs when customers exploit or manipulate a company’s promotional offers.
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