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

What is a coupon scam?

Coupon fraud, also known as coupon deception or coupon fraud, refers to any type of scam where fraudsters use coupons in illegal ways 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. Alternatively, retailers can manipulate numbers (such as prices or sales data) so they don't actually lose anything when offering discounts through coupons.

Who falls victim to fake coupon scams?

Both customers and retailers can commit coupon fraud. Whether you own a store that offers coupons or are a consumer who uses them, it's important to understand what types of coupon scams to watch out for.

What actions constitute coupon fraud? 1. Copying coupons

Scammers often create counterfeit coupons by simply copying existing coupons and trying to use them at different locations of the same store.

2. Printing too many coupons

Another common method of creating fake coupons is to print multiple copies of a coupon in an attempt to trick retailers into giving them the same discount multiple times.

3. Decoding coupons

All the numbers on a coupon barcode indicate its purpose, so scammers try to decode these numbers and create fake coupons for different products.

4. Buying or selling coupons

Coupons are free for the customers who receive them or their friends and family to use, but scammers profit by selling coupons, thereby committing coupon fraud.

5. Stealing coupon inserts

Retailers often distribute coupons in newspapers and magazines, and fraudsters steal these inserts to collect all the coupons.

6. Retailer coupon fraud: Redeeming coupons for unsold products

In some cases, retailers 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 fraud: Raising prices to offset losses

Another type of retailer coupon scam involves retailers raising the price of discounted items so you think you're getting a bargain when you're paying the original price.

The biggest coupon scam in U.S. 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 about $31.8 million in fake discounts.

The woman and her husband operated the coupon scam for about three years before being caught. They created fake coupons that looked almost identical to the real ones but offered much higher discounts, and sold them to bargain hunters through Facebook and Telegram.

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