An army of computer robots will snap up the most popular Christmas gifts and sell them off at eye-wateringly high prices, causing families to be bitterly disappointed.
Online shopping robots, known as ‘retail bots’ or ‘scalper bots’, can be programmed to buy items the moment they go on sale — before ordinary customers can get a look in.
Bot owners then list their loot on websites such as eBay at double or even triple the price — cashing in on parents desperate not to let down their children.
Automated. Online shopping robots (also known as’retailbots’ and’scalperbots) are programed to purchase products the instant they go on sale. This is before normal customers can take a look.
Some families even buy the software for as little as £19 to ensure they do not miss out when sought-after items, such as new Lego sets, are launched.
The practice of ‘scalping’ tickets for concerts and events was finally outlawed in 2018 after fury that loyal fans had to pay thousands to watch their favourite performers. Online shoppers do not have such protection.
Today, high-demand items with low supply are targets.
Gifts are subject to risk
Lego sets are already being pounced on by bots ahead of Christmas, according to cybersecurity company Netacea.
This bot detection and prevention service tracks which online groups are talking about the bots.
The company also monitors the marketplaces in which these items are being resold and confirms with authorized retailers that they still have stocks.
The firm says it has seen the Lego Creator Winter Village Cottage set, which typically retails at £89.99, being resold for £310 — a 244 pc mark-up.
Blocked: The Lego Creator Winter Village Cottage set, which retails at £89.99, is being resold for around £310 – a 244% mark-up
Money Mail found the same item on eBay for a hefty £394.95.
Matt Gracey McMinn is the head of Netacea’s threat research and says that other Lego sets such as the Titanic are likely to be targeted. Meanwhile, the limited edition Kaws’ Sesame Street Uniqlo Elmo Plush Toy, which should cost £20, is reportedly being sold online for £71.
Also, luxury advent calendars are a popular target. The Harrods Beauty Advent Calendar, which is out of stock, costs £250 and contains £1,166 of beauty products. But these are resold for between £400 and £600 on sites such as eBay, Amazon and Facebook Marketplace.
The constant predation on games consoles such as Xboxes or Sony Playstations is also ongoing. In January, the anticipated Playstation 5, which retails between £349.99 and £449.99, appeared on eBay shortly after going on sale with a 170 pc mark-up.
Trainers and clothing that are only available in limited quantities may also be at risk. When the Air Jordan Retro 1s trainers were released, they were initially priced at $110 (£82) but were sold on for $848 (£632), according to Netacea.
Hinter den Bots
The bots that make shoppers miserable are made up of three kinds. First, there are elite groups of highly skilled individuals with huge cash pots.
This is a common tactic to target expensive items. One gang spent £3 million buying 70 of only 100 special-edition BMW cars, according to Mr Gracey-McMinn.
The second group are amateurs — there was a rise over lockdown as individuals used computer software to snap up popular items to sell on at a profit.
In January, the anticipated Playstation 5, which retails between £349.99 and £449.99, appeared on eBay shortly after going on sale with a 170% mark-up
He adds: ‘They are likely to have wanted the designer trainers or Playstation themselves initially then realised they could make money reselling them.’
A third group consists of experienced developers, who manage forums and charge subscribers a monthly fee for advice and tips.
They help you identify the most profitable products, offer the software to grab them and then explain how to price your resale product.
Mr Gracey-McMinn says: ‘We know of one group that has become so successful they have now “gone professional” and registered as a company with Companies House.’ Some of these forums have tens of thousands of members. Netacea found 26,000.
Robocops
When I visit Netacea’s office in Manchester, I find a bright, quiet space and a handful of cybersecurity experts who work with firms to protect them against bot attacks.
They monitor the forums that are used by these groups as part of their work. I am shown some of their posts, which usually include information about the date for highly sought-after items as well as the price at retail and the potential resale values. Users advise whether to ‘cop’ or ‘drop’ — buy or leave — an item.
Group admins advised members of Discord’s chatroom to purchase Nike SB Dunk Low Mummy trainers. They went on sale October 28. One post said that while they cost £100 to buy, they could be sold on for more than £300.
Loot: Bots can ruin your Xmas plans, just like the Grinch
However, another post said the limited edition £180 Billie Eilish x Air Jordan trainers, also released on October 28, could be loss-making and advised users not to invest. In some cases, the individuals behind the bots even try to create artificial demand by targeting mass-produced items that may be sought after — such as gym equipment over lockdown.
Some people also buy bots for their own use, but not to sell the item.
Gracey McMinn claims that some items are in such high demand, it is impossible to purchase them without a bot.
Anybody can buy one through specialist websites such as BotBroker which links buyers and sellers. BotBroker currently offers 30 software types, with each having customer testimonials.
With 31,200 Instagram followers, and 29600 on Twitter, the company is very active on social media. The top three bots are priced between $25 (£19) and $3,000 (£2,230). The most expensive costs $7,900 (£5,872).
The software is downloaded to your computer. Next, you will need to enter the product that you wish. As soon as it becomes available it will then add it to your online shopping basket and check out using the card details you’ve told it to use.
Beware of scalpers
Retailers on the high street admit to being concerned that bots could buy their stock before real customers have a chance.
Currys states that the Playstation 5 was launched in January and its website was one of their targets. Currys introduced a priority card that required shoppers to sign up in advance so they wouldn’t miss out on the chance of buying one.
High-demand items may limit the number of purchases that a shop will allow.
Very was able to cancel more than 1000 suspicious orders in 2017 for new Xbox Series X or PlayStation 5 consoles.
Douglas Chapman is the SNP MP in Dunfermline, West Fife and wants legislation protecting shoppers. A spokesperson for the government said they were currently talking with trade organizations.
Graham Wynn, from the British Retail Consortium, says: ‘Manufacturers should work to ensure unscrupulous vendors cannot use bots to circumvent normal commercial practices to the detriment of consumers and other retailers.’
a.murray@dailymail.co.uk