Coupon Code Fraud is based on Math
Posted by Dr. Yan Lyansky on 28th Oct 2021
A major 32 million dollar coupon fraud was shut down. How do people make fake coupons? Why do they work? It comes down to two things:
2. All UPC codes, credit cards, and general codes have check digits. Companies uses a different algorithms for the check digit. Some add the digits, and see if the final UPC digit is the last digit of the sum of all other digits. There are more complicated algorithms, but keeping it private is essential. Especially for dynamically created coupon codes. I can make coupons for 99% OFF, as long as the check digit matches. Keep in mind that coupons are not currencies, hence it is nearly impossible to find a fraud in a single instance. The authorities can only catch people that go too far overboard, and repeatedly perpetuate the fraud.