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Coupon Security and Fraud Prevention

Although Internet couponing presents an exciting opportunity for regional and national brands, it can bring some potential risks without a secure Internet couponing model.

CouponSurfer.com Secure Couponing Model

  1. Customer Registration
  2. Includes Email verification with IP address recorded. CouponSurfer.com employs state of the art algorithms to prevent and eliminate duplicate or fictitious registrations. All consumers are assigned a unique user ID.

  3. Printing Coupons
  4. CouponSurfer.com distributed coupons adhere to the current UCC U.P.C. Coupon Code Guidelines Manual. CouponSurfer.com coupons can include the UCC/EAN-128 Extended Format 4, which contain unique user ID’s.

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    UCC/EAN-128 Extended Format 4 bar code contains provisions for a unique 8-digit serial number (household ID)

    CouponSurfer.com employs advanced security checks to limit the number of times a coupon can be printed. Printed coupons embed each consumer’s unique user ID in the coupon’s bar code, creating an encrypted, tamper-resistant personalized coupon traceable from a consumer to the clearinghouse.

  5. Real-Time Monitoring and Prevention
  6. CouponSurfer.com provides real-time monitoring reports to view how many coupons have been distributed including individual user ID’s. Should suspicious activity be noted, CouponSurfer.com can instantly ‘shut off’ any user. Brand access to reports is protected with Secure Socket Layer (SSL), utilizing advanced 128-bit key encryption. Cracking the 128-bit key of a single SSL message would take a single Pentium-based computer billions of years.

  7. Audit Data Collection

CouponSurfer.com complies with the electronic communications privacy act and will fully cooperate with manufacturers to supply needed data in on-going coupon fraud investigations.

FSI Security Model Exposed

Conventional wisdom has dictated that FSI coupons are very secure. They are printed in color with special paper designed to prevent tampering. A simple color copier and glossy paper provides copies of coupons that are undetectable upon typical observation (including the cashier whose primary interest is that coupons scan correctly). Current misredemption rates of up to 25% have been reported with these ‘Traditional’ coupons.

While consumer misredemption is certainly a big concern, most manufacturers are more concerned with retailer fraud (gross and non-legitimate retailers). Retailer fraud does not involve actual purchases and is viewed as a total loss. Traditional FSI coupons do not have significant controls to prevent retailers from adding additional coupons. The declining price of color printing is reaching the level where counterfeiting FSI coupons can be quite profitable. Since FSI coupons do not have unique user ID’s, manufacturers are unable to easily detect retailer fraud.

Preventing Retail Fraud with CouponSurfer.com

CouponSurfer.com distributed coupons are designed to help the brand quickly detect fraud and lets retailers know about the audit trail capabilities. While no security system is foolproof, CouponSurfer.com provides a significant boost over the current system.

Return to CouponSurfer.com On-line Media Kit

To learn more about the CouponSurfer.com secure Internet model or how CouponSurfer.com can provide your company with a competitive advantage in promoting your products to on-line consumers, please contact:

CouponSurfer.com, Inc. 1 DeAngelo Drive Bedford, MA 01730 Phone: 781.687.9616  fax: 781.687.9617 Email: info@couponsolutions.com

1998-2001 CouponSurfer and CouponSurfer.com, are trademarks of CouponSurfer.com Inc. All other trademarks referenced are property of their respective owners.