Dear Esteemed Business Partner
✍🏼Hi Derek here, one of the members of the team of Loloyal, and I am privileged to share with you the moment of functional updates about Loloyal.
We’re excited to introduce the latest updates to Loloyal! This release focuses on improving the overall experience for both buyers and merchants, empowering businesses to better manage loyalty programs while offering buyers a seamless and engaging way to participate. Here are the highlights of this update:
Loloyal’s fraud analysis helps you detect and prevent fraudulent referral activity, minimizing your program’s exposure to abuse and preserving the integrity of your reward system.
Why a Referral May Be Blocked
Loloyal automatically detects several high-risk indicators of referral fraud, including:
● High volume of referrals from the same IP address (more than 10 within 7 days)
If a referral is flagged as high-risk, it will be automatically blocked and shown in the Blocked section of your Loloyal Admin dashboard.
● The referral system prevents users from claiming rewards multiple times using the same email address.
How It Works
Logic Behind “No Similar IP Addresses”
To prevent users from creating multiple accounts on the same network (e.g., home Wi-Fi or public internet) to abuse referral rewards, the system uses IP address detection to identify abnormal behavior. This helps maintain the fairness and integrity of the referral program.
The anti-fraud check is activated when a referred user clicks “Claim now”, and may block reward claims at the following stages:
1. Email Submission Stage
When a user submits their email to claim the referral reward code, the system checks whether the IP address has a suspicious usage history.
2. Claim Attempt Limit
If the same IP address clicks “Claim now” more than 10 times under the same referral link, further claims will be blocked.
Verification Rules
● IP Activity in the Past 7 Days
○ Within the same store, if an IP address has attempted to claim rewards more than 10 times in the past 7 days using the same referral link, the 11th attempt will be blocked.
○ This restriction is tied to a specific store + referral link combination.
👉Note: This restriction only applies to the current store. Claims from the same IP address in other stores will not be affected.
🙋♂️ FAQs
● New Referral Link, New Chance
If the user switches to a different referral link within the same store, they will receive a new limit of 10 claim attempts. Each referral link has its own IP-based limit.
● Not Dependent on Order Placement
Whether or not the referred user places an order does not affect the IP validation. The check is based on account creation and claim attempt behavior.
● Restricted to Store and Referral Link Level
IP monitoring is enforced within the same store and specific referral link. If an IP is blocked under a referral link in Store A, it can still join referral programs in Store B or use other referral links in Store A. IP restrictions are not shared across stores. Each store independently enforces its own referral activity limits.