Coupons are a great way to get discounts on everything from groceries to clothing, but you have to be careful not to fall for coupon scams.

What is a coupon scam?

Coupon scams, also called coupon scams or coupon fraud, are any type of scam in which fraudsters use coupons in an illegal way to mislead consumers or retailers and steal money.

For example, scammers can create fake coupons and use them to get huge discounts on products themselves or sell them to unsuspecting shoppers. Or, retailers can manipulate numbers (such as prices or sales data) so that they don't actually lose anything when offering discounts through coupons.

Who falls victim to fake coupon scams?

Coupon fraud can be perpetrated by both customers and retailers. Whether you own a store that offers coupons or you are a consumer who uses coupons, it is important to know what types of coupon scams to be wary of.

What constitutes coupon fraud? 1. Coupon duplication

Scammers often create counterfeit coupons by simply duplicating existing coupons and attempting to use them at different locations in the same store.

2. Printing too many coupons

Another common way to create fake coupons is to print multiple coupons in an attempt to trick retailers into giving them the same discount multiple times.

3. Decoding coupons

All the numbers on the coupon barcode indicate what it is for, so scammers try to decode these numbers and create fake coupons for different products.

4. Buying or selling coupons

Coupons are free and are for the receiving customer or their friends or family to use, but scammers sell them for profit, thus committing coupon fraud.

5. Stealing coupon notices

Retailers often give out coupons in newspapers and magazines, and scammers will steal these coupons around to get all the coupons.

6. Retailer Coupon Scam: Redeeming Coupons for Unsold Products

In some cases, retailers will alter their records to make it appear that products were sold using coupons in order to claim rebates or refunds from suppliers/manufacturers.

Retailer Coupon Scam: Raising Prices to Offset Losses

Another type of retailer coupon scam involves retailers raising the price of discounted items so you think you are getting a good deal when you paid the original price.

The Biggest Coupon Scam in American History

Using fake coupons is no joke. In 2020, a Virginia Beach woman was sentenced to 12 years in prison for running a coupon counterfeiting ring that cost retailers an estimated $31.8 million in fake discounts.

The woman and her husband ran the coupon scam for about three years before they were caught. They created fake coupons that were nearly identical to the real thing, but with much higher discounts, and sold them to bargain hunters via Facebook and Telegram.

Eventually, their illegal activities caught up with them, but there are many other coupon scammers running similar operations that you need to be wary of.