Identifying Suspicious Coupons &
Coupon Fraud Prevention
ProLogic strongly opposes coupon fraud and misredemption and takes an active role in detecting and stamping out this activity. We support the efforts of Coupon Information Corporation (CIC), which is leading industry efforts around eliminating fraud and misredemption.
Our Fraud Identification Process
Upon the arrival of a customer’s paper coupons at ProLogic's processing facilities, trained inspectors examine the coupons for any signs of fraud or misredemption, including:
- Evidence of reproduction or photocopying
- Coupons in mint condition
- Coupons with exact sequential number patterns
- Unusually long expiration dates
- "Free" coupons
- "High value" coupons (greater than 75% of the product’s value or greater than $5.00)
- Coupons that are missing legal language or a scannable barcode
- Multiple prints or copies of the same coupon
- Physical alterations to the coupon, such as trimming, gang cutting, or coupons with evidence of tape
ProLogic also analyzes
- Coupon redemption patterns and compares them against historical trends and industry norms
- Volumes of incoming coupons
- The mix of coupon sources and products
- Seasonality of incoming coupons
- Logical matches between products and retailers
When we suspect any level of fraud or misredemption, we immediately send digital images of the suspicious coupons back to the retailer and follow up with a discussion of how best to address the situation.
The coupon industry's success requires a high degree of trust among retailers, clearinghouses and manufacturers. Each of these parties must work to build a process that ultimately benefits the consumer and eliminates the potential for fraud and misredemption. ProLogic is committed to working with the industry to achieve this goal and also to maintaining the highest level of integrity and control within our own operations.
Follow us on Twitter for the latest Coupon Fraud Alerts issued by the CIC.
Read ProLogic's whitepaper "Reducing Misredemption & Fraud in the Coupon Industry" for steps retailers can take to reduce misredemption in their stores.
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