Coupons are a great way to save money on everyday purchases for customers.
Whether used in-person or online, coupons are a fantastic method to save money on goods.
Customers get coupon codes frequently via emails or stores. You also apply these codes when you do online shopping, which we call promo codes.
So, remember one thing, not all discount codes are as innocent as they seem. Scammers have increasingly turned these codes into clever traps and steal your data.
These scams can lead to financial losses, identity theft, and frustration.
Coupon fraud incidents increased by 25% compared to the previous year, costing businesses millions annually.
Here we discuss what is it. How they work, and most importantly how we protect ourselves from falling victim to them.
Coupon Scams: What is it?
The purpose of coupon scams is to deceive customers into disclosing credit card information as well as personal information by creating phony coupons.
These scams can occur on multiple platforms such as websites, social media, and even email.
Moreover, some coupon scams are designed in such a way that they directly steal customer data while others may be part of a larger scheme.
How Scammers Grab Customer Attention
It is hard to get customer attention; scammers know this that’s why they offer discounts during peak shopping seasons like Black Friday or Cyber Monday.
So, they create fake coupon codes and promise significant discounts like 70% or more to lure in unsuspecting buyers.
One of the most common tricks which is used by scammers is phishing.
In this way, they’ll send out emails that appear to be from appropriate retailers, offering coupon codes in exchange for providing personal information when you click a link.
Common Types of Coupon Scams
Fake Online Coupon Codes
This is one of the most common type. In this type, scammers distribute the fake online coupon codes.
They create websites or social media posts that offer huge discounts, or free products.
When customers try to use these codes at legitimate retailers, they find that the code doesn’t work.
Furthermore, some websites require users to enter their personal information or credit card details to unlock the code.
After unlocking the code, the scammer stole the information.
Counterfeit Printable Coupons
Counterfeit printable coupons are often distributed via email, social media, or shady websites.
Scammers create highly realistic coupons for popular products and distribute them online or via email. Retailers reject these fake coupons, leaving consumers without the promised discount.
Phishing scam
A phishing scam is a larger category of online fraud in which scammers attempt to trick individuals to provide their personal or financial information.
Scammers know that brand names that customers trust more. So, they create phishing emails claiming to be from well-known brands.
These emails contain fake coupon codes and ask you to click a link to get the offer.
After clicking on the link, you’re either led to a fake website or you unknowingly download malware.
Survey Scam
We often see such a statement” Fill out this survey to get $100”.
In these survey scams, customers are tricked into completing a few questions in exchange for a discount.
Their aim is to get your personal data from your home address to your email address.
Once the survey is completed, the promised coupon never materializes, and the scammer now has valuable data to sell.
Social Media Coupon Scam
Social media platforms have become productive grounds for coupon scams.
One famous example was the fraudulent Costco coupon that went viral on Facebook, directing visitors to a phishing website while offering a $70 discount.
Mobile Coupon Scams
With the rise of mobile coupon apps as well as digital wallets, scammers have adapted to target mobile users.
Fake coupon apps offer you to provide significant discounts but instead steal information by installing malware to your device.
Some Common Coupon Scams (2024)
With the rising trend of online shopping and digital payment methods, some common forms of scams are:
- Fake E-commerce Websites& Social Media
- Investment App Scams
Fake E-commerce Websites& Social Media
Scammers create websites or social media pages that mimic legitimate businesses.
Customers are excited to use special offers on these platforms and after payment, these platforms disappear.
Moreover, leaving customers with no way to reclaim their money.
Investment App Scams
Fake apps offer high return on investment via seemingly simple tasks such as:
- Watching ads
These apps grab user’s attention by offering discounts on investment packages.
For example, one famous scam involved offering a 50% discount on investment packages during promotions.
After collecting funds, the app shut down
However, one must verify the authenticity of apps and websites before making purchases or investments.
How to Identify Fake Coupon Codes?
Here are some important points to keep in mind to identifying scammers:
What Should I do if I fall victim to a coupon scam?
If you fall victim, immediately your bank to report any unauthorized charges.
Change your passwords and monitor your accounts for suspicious activity.
Steps to Protect Yourself from Coupon Scam
There are several steps you can take to protect yourself and reduce the risk of falling victim to these scammer’s tricks.
Here are some essential tips to help you stay protected while using coupons:
Use Trusted Sources for Coupons
You should acquire coupons from trusted and reputable sources like official websites of retailers, well-known coupon apps, and official websites of manufacturers.
Be careful of unfamiliar websites and if they require you to enter personal or credit card information to access coupons.
Verify Coupon
Before using a coupon verify its legitimacy. Check the retailer’s official website or contact their representative to get valid information.
Furthermore, you can use online coupon verification websites or apps before proceeding.
Avoid Clicking on Links
Phishing scams are in the form of spontaneous emails that contain links to fake coupon websites.
To prevent this, never click on the link and delete the notification if you weren’t expecting it.
Install Security Software
Install updated security software on your laptop, smartphone, or tablet to protect against such scams.
This software helps to detect and block phishing attempts, malware, and other online threats that scammers use.
Wrap Up
Coupon scams are a growing threat in online shopping. Although, it is a great way to save money scammers are constantly evolving their tactics.
However, you have the right knowledge and precautions to protect yourself.
So, if a coupon offer seems too good then, verify it and utilize the above protecting strategies to shop smart.
