If it feels like your new “customers” sign up and ghost you faster than a bad Tinder date... you might be dealing with bots.
In this publication, we're spotlighting a growing threat small businesses can no longer afford to ignore: fake signups. It's not just a numbers game — it's a direct hit on your business's reputation, resources, and security.
A new report from Okta reveals that 46% of all customer signups in 2024 came from bots, not humans. These fake accounts are more than just annoying — they’re often the front line of much bigger cyberattacks.
How It Works:
- Bots flood your signup forms pretending to be real customers.
- They collect promo codes, hoard free trials, and test your system for weaknesses.
- Some bots "age" accounts over weeks so they appear legit — then strike.
- In some cases, bots overload your system entirely, causing slowdowns or full-on crashes (a DoS attack).
It’s like handing out VIP wristbands at a party... only to realize half the guests are robots in trench coats.
Who’s Targeted:
- Small businesses with customer signup forms, free trials, or loyalty programs
- E-commerce and retail sites — the most affected sector in 2024
- Financial and professional services — prime targets for data-hungry bots
- Any business offering discounts, early access, or account perks
If you're collecting emails, offering a signup bonus, or just trying to grow your customer base — you're on the radar.
Real-Life Example:
Okta’s report found that retail and e-commerce companies saw fake signups outnumber real ones 120 to 1 at their peak. In April 2024 alone, one day saw 93% of signups as fake. And it’s not just retail — bots are hitting everything from fintech to furniture brands.
Why You Should Care:
Letting bots into your system is like leaving your back door unlocked:
- They skew your analytics — making it hard to know what’s working in your marketing
- They drain your promotions — burning through trial offers, coupons, and points
- They endanger your customers — testing passwords and hunting for data
- They slow or crash your site — frustrating real customers
- They prep for larger attacks — like account takeovers or data breaches
And with AI-powered bots, it’s even harder to tell the fake from the real.
How to Protect Yourself:
• Use CAPTCHAs smartly — Only show them when activity seems suspicious, not every time.
• Block shady IPs — Use security tools to detect and automatically block traffic from sketchy locations.
• Rate-limit signups — Cap how many accounts can be created from a single IP/device.
• Add a Web Application Firewall (WAF) — A great line of defense for your site.
• Streamline secure logins — Use passkeys or one-tap logins instead of long forms.
• Install bot protection tools — Modern tools use behavior tracking to spot and block bots in real time.
Quick Tips:
Quick Tip: Notice a bunch of signups from odd email addresses or the same IP? Bots may already be inside.
Pro Tip: Don’t just rely on basic form validation — pair it with behavioral tools that monitor patterns bots can’t fake.
Stay safe, stay informed.
Definitions of Key Terms
- Bot: A software application that runs automated tasks — often used by cybercriminals to mimic real users.
- Fake Signups: False account registrations, typically created by bots to exploit promotions or test systems.
- Denial-of-Service (DoS) Attack: A cyberattack where systems are overloaded with traffic to disrupt operations.
- CAPTCHA: A tool used on websites to distinguish human users from bots.
- Web Application Firewall (WAF): A security system that filters and monitors HTTP traffic to and from a web application.
- Passkey: A password-free login method that uses biometrics or device-based authentication.
- Rate-Limiting: A technique to control the number of requests a user can make to a server over a certain time.
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