Page 21 - WBG March 2025

FEATURE

The Arizona case—including the CIC’s role—is the centerpiece of a officials to end fraud and prosecute the wrongdoers, it also gives
new coupon fraud exhibit at the Alcatraz East Crime Museum in manufacturers, retailers and restaurants guidance on how to
Tennessee. improve their coupon safety, including by adding holograms or
special logos to the coupons. It has developed a phone app that
CIC was also involved in exposing a high-profile Texas coupon fraud allows cashiers and law enforcement to scan coupons to verify
ring in which three people were charged with theft and 87 other their authenticity. And it keeps a database of fraudulent coupons
people across 23 states were linked to the scheme, which bilked which can be used to prevent them from being accepted.
manufacturers out of millions of dollars.
Miller said one large chain store recently reported its counterfeit
Since it began operations in 1986, CIC has exposed illegal coupon coupon exposure dropped 95 percent after implementing CIC’s file.
operations worth more than $750 million. Miller said people are often
surprised by the amount of money involved in the schemes, adding The search for scammers is a slow and methodical process. Often,
that large-scale coupon fraud can be more profitable than selling CIC purchases counterfeit coupons then works backward to find
drugs. their source.

“You have to be persistent at this job. Running the CIC is a pretty
intense job,” Miller said. “Frequently, it’s more than 9-to-5 and it’s
more than five days a week. And every day is different. You have to
be able to think beyond the box, and you have to be able to think
like a criminal.

“I never know if I’m going to be talking to a CEO or to a heroin
addict—and I have to be comfortable enough to deal with both.”

or CIC, it’s not just about catching and prosecuting wrongdoers.
Prosecutions add to deterrence, but the ultimate goal is to secure
the couponing system.

Cybersecurity expertise and data analysis programs offered at
UMGC, are good platforms for working in the anti-fraud field,
A counterfeit coupon mailing station discovered in Phoenix, Arizona. which is increasingly high-tech, Miller said.

“It does not cost a lot of money to create a fake coupon. It’s either slips “Con artists are constantly evolving and becoming more
of paper or electronic files that are circulated through secret groups sophisticated. We’ve already observed them attempting to take
on social media platforms,” he said. “Like anything else out there, advantage of digital promotions,” Miller said. “CIC’s Tiger Team
coupons are evolving. There’s greater emphasis on digital coupons, is addressing this growing challenge with new technologies and
and that’s the fastest growing area of the industry.” creating new techniques for high-tech-enabled law enforcement
investigations.”
A survey by Ad Age magazine just more than three years ago found
that 68 percent of consumers have used coupons. The American Miller is an engaged alumnus at UMGC, where he and his wife
Society for Industrial Security in Alexandria, Virginia, characterizes established the Ed & Jean Miller Answering the Call Scholarship
coupons as the most effective way to introduce consumers to new in honor of his parents. The scholarship supports servicemembers
products, services and restaurants. who have served in a war zone in the 24 months prior to receiving
the scholarship, UMGC students currently serving in a war zone or
“The United States is the largest coupon market in the world. family members of servicemembers who lost their lives in combat.
Americans are coupon crazy,” Miller explained. “When everything’s
working correctly, coupons are a great deal. Manufacturers are selling https://www.umgc.edu/news/archives/2025/03/crime-buster--umgc-
their products, retailers are meeting sales goals and consumers save alum-manages-high-stakes-coupon-fraud-watchdo
money.

“Unfortunately, on the other side, we always have cases going on.”
Miller said coupon fraud carries a direct cost to retailers while also
forcing them to bear the expense of tracking and monitoring coupon Bud Miller is the executive
use and misuse. Fake coupons also rob states of tax revenue. director of the Coupon Information
Corporation.
Before launching CIC, Miller traveled across the country to observe
how coupons were produced, introduced into use and processed.
Today, while CIC’s biggest effort goes into work with law enforcement

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