The holiday season is once again upon us, with the excitement of retail shopping filling the air. Gift-givers are flocking online in search of the perfect presents and the best deals. But amidst the surge in digital traffic, a growing bot threat lurks. These malicious, automated programs are more pervasive—and damaging—than ever, with their disruptive presence felt not only in online retail but across various industries.

Over the last few years, malicious bots have wreaked havoc on critical commodities, from exacerbating baby formula shortages to creating chaos in gaming console availability and manipulating prices during Black Friday sales. These bots prey on high-demand, limited-supply items, disrupting markets and frustrating legitimate consumers. Their influence is growing, and in 2024, the consequences of malicious bot traffic are being felt on a far wider scale than in previous years.

Alarming Rise in Malicious Bot Traffic

Updated research from Imperva’s 2024 Bad Bot Report reveals that bots now account for over 47% of total online traffic, with 30% classified as malicious. This marks a significant increase from previous years, as cybercriminals are deploying more sophisticated bots to manipulate online retail, hijack inventories, and disrupt sales. In peak shopping seasons like Black Friday and Cyber Monday, malicious bot activity has surged by 30%, intensifying the challenges businesses face in maintaining control over their stock, prices, and customer experience.

In financial terms, malicious bots caused an estimated $6 billion in losses during the 2023 holiday season alone. These losses stemmed from fraudulent transactions, inventory manipulation, and scalping—where bots snatch up large quantities of products to resell at inflated prices, leaving legitimate customers in the cold. The consequences of unchecked bot activity extend beyond financial harm to erode customer trust and brand reputation.

The Hidden Impact of Malicious Bots

Malicious bots can cause serious disruptions that often go unnoticed until the damage is done. These bots:

• Deplete Inventory: Bots can hoard high-demand items, resulting in shortages and frustrated customers. The gaming console shortage of 2023 is just one example where bots were to blame for customers’ inability to purchase the product.
• Distort Pricing: Bots can manipulate prices, inflating them for profit or deflating them to trigger stock disruptions, creating an unstable market for consumers and businesses alike.
• Compromise User Experience: Bots can slow down websites, causing crashes and downtime that frustrate legitimate customers. Additionally, they can engage in fraud through account takeovers, payment fraud, and more.

With bots becoming more sophisticated, traditional defenses like CAPTCHA systems and IP blocking are increasingly ineffective. Businesses must adopt advanced solutions that not only identify and block bots but can adapt to ever-evolving threats in real-time.

Strengthening Your Defense: The Role of Bot Protection

As bots become more advanced, so too must the defenses against them. Businesses can no longer afford to take a reactive approach to bot traffic; instead, they need to be proactive. With tools like BotGuard, you can:

• Protect your inventory from being wiped out by scalper bots.
• Prevent price manipulation and fraud.
• Ensure your website remains fast and responsive, even during high-traffic periods.

In 2024, the stakes are higher than ever, but so are the tools available to protect against malicious bots. With the right defenses in place, you can turn the holiday season into a win for both your business and your customers, while keeping malicious bots at bay.