Discount fraud happens when someone cheats or scams to get discounts they shouldn’t have. Beware of people giving you fake discount offers. 

Discount fraud can happen in several ways

• Fake Coupons or Codes: Someone creates counterfeit discount codes or coupons and uses them to get discounts.
• Exploiting Errors: Finding and exploiting errors in a store’s pricing or discount system to get unauthorized discounts.
• Using Stolen or Leaked Codes: Using discount codes that were stolen or leaked, which weren’t intended for public use.
• Account Manipulation: Creating multiple accounts to use the same discount repeatedly or taking advantage of referral bonuses fraudulently.
• Misleading Claims: Providing false information, like pretending to be a student or employee of a company to access specific discounts meant for those groups.
• Refund Scams: Buying items with a discount and then returning them for a full price refund, keeping the discount benefit. 

Source: Raju & The Forty Thieves

Preventing discount frauds involves several strategies

• Ensure that all discounts and promotions are legitimate and correctly applied. Regularly audit your discount codes and offers.
• Generate unique discount codes for each promotion. Avoid using generic codes that can be easily shared.
• Set limits on the number of times a discount code can be used. This helps prevent abuse of single-use codes.
• Keep an eye on transaction patterns and look for unusual activity, such as bulk purchases or multiple uses of the same code from different accounts.
• Use secure methods to authenticate users before applying discounts, such as requiring an account login or verification.
• Implement tools and software designed to detect and prevent fraudulent activities.
• Pay close attention to returns and refunds associated with discounts. Fraudsters may exploit these processes.
• Report the incident to the nearest Cybercrime Police Station and National Cyber Crime Portal at https://cybercrime.gov.in/