DSS Comments on Landmark Coupon Fraud Case

Document Security Systems, Inc.

commented today on the recent landmark case of coupon fraud discovered in Arizona. (See http://www.azfamily.com/news/PD-Counterfeit-coupon-operation-busted-in-Phoenix-161960155.html for more information.) The case involves the production and sale of counterfeit coupons for products offered by 40 of the nation's largest brand owners. Approximately 4 years ago, high quality counterfeit coupons began surfacing in the United States from an unknown source. Several of the affected brand owners, along with the Coupon Information Council (CIC), hired private investigators to pursue the source of the counterfeit coupons. The investigation led to 3 homes in Arizona where Police and Federal agents seized boxes of coupons, vehicles, guns and other property. The seized coupons were variations and reproductions of previously valid coupons and had a value in excess of $25 million dollars with the total estimated economic loss to the companies of between $400 million and $600 million. The ringleader of the coupon scam was determined to have brought in the fraudulent coupons from overseas and sold them on a website for 50% of face value. According to the article, the CIC is calling this the largest counterfeit coupon case the industry has ever seen.