Cyber Fraud Part 33: Beware of Discount Fraud

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/