Last week, Phoenix, Arizona police busted what is now being called the largest counterfeit coupon ring in the country. The homes of three women were raided and $25-million in fake coupons were confiscated. Police forces also discovered 22 assault weapons and 21 vehicles, including a 40-foot boat, says Business Insider. The coupons aren’t for a savings of 50-cents or a dollar. They are “free item” coupons. “For Iams [the catfood company], you get this coupon from her for $10 and you can get a $70 item… If you can get an unlimited number of those, think how this grows,” says Phoenix Police Sgt. Dave Lake.
The three suspects allegedly ran their fraudulent business out of their homes in the Arizona area. They used a fake website and eBay to sell the counterfeit coupons – often at an enticingly discounted rate. Users who were interested in receiving coupons (and who wouldn’t be, given their value) were invited to join the site. Making the offer even more enticing, users were told that they would receive a 100 per cent refund if their coupons were rejected at the point of sale.
While one might think that invited users were onto the scam, it’s quite possible that many of them weren’t. The website domain was meant to mirror a well-known and trusted brand, “Savvy Shopper,” a magazine that sends out legitimate coupons to consumers each week. It’s likely that the brand image was used to make the products seem that much more legitimate.
Luckily, none of the consumers who purchased the counterfeit coupons will be charged with fraud, likely because it’s difficult to prove whether or not they were actually in the know. What is known is that many of them risked the financial security themselves and their families by providing the crime ring with their names, home addresses and financial information.
According to industry watchdog, Coupon Information Corporation, the investigation was led by the Phoenix Police Department in collaboration with the FBI and several manufacturing mega-businesses, including Proctor & Gamble, PepsiCo and Hershey, after they were tipped off suspicious retailers. The list of manufacturers that have fallen victim to fraud includes some 40 names. Police estimate that profit losses amount to hundreds of millions.

The CIC offers this advice on avoiding counterfeit coupons:


  • Don’t buy them – plain and simple.
  • “Be aware of invalid disclaimers, such as ‘You are not paying for the coupons, but for the time and effort it took to clip them.’”
  • Be careful. If the coupon you receive has been mailed to you by anyone other than the manufacturer, it could be a fake.
  • Coupons that are visible on computer screens are likely fakes.
  • According to the CIC, free coupons are almost never distributed on the internet.


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