Coupon fraud is not a trivial concern; it’s a massive financial drain on businesses worldwide. Recent findings from an extensive study by anti-fraud company Riskified reveal the staggering extent of these losses. To put it into perspective, policy abuses like return fraud and coupon stacking are bleeding retailers an astonishing $100 billion annually.[1] These figures are not just numbers; they’re real losses that impact a company’s bottom line and shareholder confidence.
But let’s not stop there; we’ve got another alarming example to add to the mix. Last year, PayPal had to shut down a staggering 4.5 million accounts due to “bad actors” hacking into their incentive and rewards program.[2] The fallout from this breach was devastating, resulting in a loss of revenue that not only negatively impacted business operations but also caused a significant hit to their share prices.
The Blockchain Solution: Ironclad Security
So, how do we combat this ever-growing menace of coupon fraud? The answer lies in blockchain technology. At its core, blockchain is designed to verify the accuracy of information and transactions. It achieves this by creating a decentralized and immutable ledger where data is stored across a network of computers. Every piece of data is securely encrypted in a block, and these blocks are linked together in chronological order, creating an unbreakable chain. Here’s where the magic happens:
Blockchain ensures data integrity by timestamping every transaction. If even a small detail is changed, the entire transaction history will be disrupted, making fraud instantly detectable.
Immutability
In a blockchain, once a transaction or piece of data is recorded, it cannot be altered or deleted. This means that any attempt to tamper with the information will be immediately detected and rejected. In the world of coupon fraud, where fraudsters often manipulate data to their advantage, blockchain’s immutability is a game-changer.
Transparency
Blockchain operates on a decentralized network, meaning no single entity has full control. All participants in the network have access to the same information, creating transparency and trust. Retailers can rest assured that every coupon redemption is authentic and verifiable.
Smart Contracts
Blockchain technology allows for the creation of smart contracts, which are self-executing agreements with predefined rules. When a condition is met (e.g., a customer fulfills the criteria for a discount), the smart contract automatically executes, eliminating the need for intermediaries and reducing the risk of fraud.
Data Integrity
Coupon fraud often involves altering data, such as coupon codes or expiration dates. Blockchain ensures data integrity by timestamping every transaction. If even a small detail is changed, the entire transaction history will be disrupted, making fraud instantly detectable.
Uplift: Your Shield Against Coupon Fraud
Now, let’s delve into how GCAC’s Uplift, is the world’s only and most secure, e-couponing system on the blockchain. The Uplift dApp (decentralized app- a fancy way to say a blockchain App) specifically tackles the coupon fraud epidemic, making it a must-have for retailers looking to safeguard their promotions and profits.
Uniqueness
Uplift takes a radical approach to coupons – every single one is unique. Once used, a coupon becomes utterly unusable forever. This stands in stark contrast to traditional paper coupons and e-coupons that can easily be photocopied or shared.
Traditional coupon fraudsters often exploit the ease of creating fake email addresses to game the system. With Uplift, the game is over. The Uplift app employs biometrics, ensuring that only the genuine user of the smartphone can redeem the coupon.
Biometric Authentication
Traditional coupon fraudsters often exploit the ease of creating fake email addresses to game the system. With Uplift, the game is over. The Uplift app employs biometrics, ensuring that only the genuine user of the smartphone can redeem the coupon. This level of security is unparalleled.
Limit and Urgency
One of the most potent features of Uplift is its ability to create a sense of urgency. Brands and retailers can set limits on the number of coupons they wish to redeem. Once that limit is reached, the promotion ends, driving consumers to make a purchase before the deal disappears. It’s a win-win – retailers maintain control, and consumers get the urgency they crave.
Seamless Integration
Uplift seamlessly integrates with a company’s Point of Sale (POS) system. This ensures that stock is accurately tracked, and discounts are applied only to the intended products. No more guessing or retroactive investigations; it’s all automated.
Blockchain Technology
At the heart of Uplift’s security lies the Ethereum Layer 2 blockchain. Every transaction is securely recorded on a blockchain, creating an unforgeable record of coupon redemptions. Fraudulent activities stand no chance against this impenetrable layer of security.
Building Customer Loyalty
Uplift doesn’t just thwart fraud; it also helps you build customer loyalty. Once a consumer redeems a coupon, the brand or retailer can reward that specific customer with more offers. This personalized approach nurtures brand loyalty, transforming one-time buyers into lifelong customers.
In a world where coupon fraud is a billion-dollar threat, Uplift offers a lifeline. Say goodbye to revenue losses and customer mistrust. Choose Uplift, secure your promotions, protect your profits, and foster customer loyalty like never before. The fear of missing out is real, but with Uplift, you won’t have to worry about missing out on revenue due to coupon fraud ever again. It’s time to fortify your business against fraudsters – choose Uplift today!
[1] https://www.cnbc.com/2023/09/14/retailers-are-losing-100-billion-a-year-from-fraud-riskified.html
2]https://www.bnnbloomberg.ca/paypal-is-searching-for-a-ceo-who-can-reverse-its-279-billion-stock-drop-1.1889792
