Coupon Fraud On The Rise

The Coupon Information Corp. (a non profit watchdog for the retail industry) reported only two cases of investigated and prosecuted coupon fraud from 1986 to 2001.

In 2007, that number increased slightly to nine cases. In 2008, however, that number jumped to 93, and is only expected to rise.

For example, Purina issued 250 coupons in 2008 for one free bag of dry dog food. Within five months, more than 2,500 coupons were redeemed. Coke had to discontinue its “My Coke Rewards” program due to widespread coupon fraud for a free 12-pack.

Experts blame the recession and available Internet tools that make it easy to tamper with coupons—a new hobby of some Americans that’s estimated to be costing retailers tens of millions of dollars.

Legal coupon use is on the rise, too. Coupon redemption rose 10 percent in the final quarter of last year, for a year total of 2.6 billion coupons redeemed.

For now, manufacturers are trying to crack down on the illegal use by increasing the integrity of their coupons and making it clear that fraudulent use by consumers will result in criminal prosecutions.

Source:

CNNMoney: Manufacturers, Retailers Facing Rising Coupon Fraud

Related Content:

Bargain Shoppers Ahead

Rethink Your Strategy To Deal With Consumer Frugality