Extreme Couponing or Coupon Fraud?

Updated: Jun 30

In this age of competition when everyone is trying to sell their product, giving out discounts only seems a plausible option to sustain. The prices of consumer items are already inflated and coupons are given out to increase sales. One must question what exactly is meant by extreme couponing and have we been doing it sub- consciously? Coupon fraud may be defined as whenever someone intentionally uses a coupon for a product he/she did not purchase or a product that does not meet the refund terms and conditions, when a retailer submits a coupon for a product that has not been sold or has not been fully redeemed by the relevant consumer Retail purchase; or when coupons are altered/forged.


To understand this type of fraud we will look at an example, to simplify things.


One of the extreme coupon user used coupons in the program to save on other items, even items that coupons are not suitable for. For example, you have a 75 cent Fiberone grain coupon and use it for Fiberone to purchase honey nuts, Cheerios, Kix, and lucky charms during the promotion period. They paid for the coupon when they bought the $ 100 coupon and received a coupon for a free mixed transaction. The coupon should indicate which product it applies to and how to use it on the product. The store cannot refund the coupon, so the coupon policy is very strict to prevent this type of fraud. The coupon should contain information about the specific product for which the coupon is used.


If users want to use more than four coupons, they must purchase all day. If you do not purchase, you may need to print out coupons and take them to the physical store. If a retailer submits a coupon for a product they do not sell, and does not redeem the coupon when the consumer purchases a specific product, submitting the coupon is fraudulent by the retailer. If consumers use coupons for their products, if the store sends the coupons in accordance with the manufacturer's coupon policy, the manufacturer will compensate the store.


Coupon fraud increases user costs and makes it harder for genuine and honest consumers to use coupons. Not only have the customers who use the coupons committed coupon fraud, but also the merchants who accept the coupons. When looking at coupon fraud, prosecutors incline to aim at people who make tons of money by accepting, using, or making deceitful coupons, but this does not mean that if their fake use is unintended, you are safe. In some cases, people didn't even realize they were using fake coupons and ended up engaging in coupon scams.


The best way to protect yourself from allegations of fraud is to read the terms and conditions of the coupons you use to make sure you actually use them. Be sure to check the coupon policy of your store, because many have very strict regulations (when you see something on My CouponFraud.com this is great, but I assure you that most stores have changed them Coupon policy. Coupons).


As discussed in this article, the coupon industry is struggling with extreme coupons and many fraudulent methods developed by consumers using coupons for their own financial gain. Coupon fraud can lead to hefty fines and even imprisonment, depending on the extreme degree of fraud. Coupon fraud will be punished and penalties vary from case to case, but Coupon Information Corporation (CIC) said the most serious convictions for coupon fraud include up to 17 years of jail time and monetary fines up to $ 5 million. There have been several cases where people were sentenced to long prison terms and large-scale fines due to coupon fraud, but ordinary coupons can also involve coupon fraud.


Incredibly good and fraudulent vouchers continue to circulate on the Internet, and many innocent consumers, retailers and manufacturers are stuck, wasting time and money. Maximizing the coupon function can spell the end of coupon fraud, causing manufacturers hundreds of millions of dollars in losses each year. If you don't talk about coupon scams, you can't write an article on extreme coupon use. If you read the coupon before purchasing the product, declare that you comply with their coupon policy, and confirm that you have all the clues, then it is fraudulent.

To give a background, Coupon Information Corporation also known as CIC is a non-profit association of customer items makers devoted to contesting coupon and redemption fraud. Consumers cannot redeem coupons for products that are related to retail purchases or when the coupons are modified to counterfeit products. Since its establishment in 1985, CIC has uncovered more than $750 million in fraudulent schemes. In May 2011, CIC published 25 fake coupons on its website and provided various rewards to those responsible for successfully prosecuting the fake coupons. Coupon tailoring service provides coupons up to $50 and up to $0.3. Another problem is the use of manufacturer vouchers in stores. Fraud is the purchase of coupons that adds to the total cost of shopping travel costs not reported on TV.


As mentioned above, coupon fraud causes shops to increase prices to make up for the profits they lost due to forged coupons. If your store uses the extra 800 free merchandise coupons in the episode, it will not be counted as fake tidal coupons. If there are more fake coupons that day, the store will lose $12,000. If you are familiar with Procter Gamble coupon codes, you will know that the company, like most manufacturers, is very careful in issuing coupons for free products to consumers. It is rare to see coupons with free P&G product safety holograms.


How to prevent?


Tracking coupon redemptions is an arduous fight, even for the most famous and well- known companies. At some point, coupon abuse has affected the vast majority of businesses, and with the popularity of online promotions, this embarrassing statistic is expected to grow. Coupon usage restrictions should be in line with your marketing goals and flexible enough to cope with unexpected business changes and dynamic changes. In this article, we will show you how to limit the use of coupons and make redemption a reliable indicator of the success of the campaign.


This is a list of important things to keep in mind to prevent coupon fraud:

  1. Generate code that is difficult to crack.

  2. Don't expose everything.

  3. Enter the budget limit.

  4. Use order and shopping cart-based coupon redemption standards.

  5. Check the coupon activity period.

  6. Always enter email verification for digital offers.

  7. Assign a unique code to the personal customer profile.

  8. Use web beacons to monitor IP addresses.

  9. Monitor the suspicious behavior of the transaction.

  10. Use temporary environment to test coupons.

  11. Control access to your promotional software.

  12. A geolocation coupon must be created.

  13. Control the distribution of coupons.

  14. Analyze investment behavior to detect suspicious activities.

  15. Limit the number of coupon redemptions.


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