DSS Comments on Landmark Coupon Fraud Case
ROCHESTER, N.Y., July 17, 2012 /PRNewswire via COMTEX/ -- Document Security
Systems, Inc. (DSS), a leading developer and integrator of cloud computing data
security, Radio Frequency Identification ("RFID") systems and security printing
technologies which prevent counterfeiting, product diversion and brand fraud,
commented today on the recent landmark case of coupon fraud discovered in
Arizona. (See
azfamily.com
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.
Patrick White, CEO of Document Security Systems commented, "This case of coupon
fraud demonstrates the severity of the issue and the growing financial loss that
brand owners have been experiencing. Coupons that were once unprotected, were
counterfeited, altered and mass produced outside the country and then imported
for resale. While use of these coupons is illegal, consumers are purchasing the
counterfeit coupons online, unaware of the scheme and associated risk. The
quality of the re-engineered counterfeit coupons is high enough that cashiers and
stores are accepting and processing them on a regular basis without knowledge of
the fraud." White continued, "The CIC has been working diligently with the brand
owners to help them protect their coupons and also educate the public as to the
security features that now appear on coupons. I commend them on their diligent
work in tracking down the source of these fraudulent coupons. In our opinion, the
answer to this growing problem is 3-fold: use of security technologies on the
coupons, commitment to coupon authentication at the retail level, and consumer
education on the risks of unlawful use of counterfeits coupons."
DSS offers a wide range of state-of-the-art patented solutions against
counterfeit coupons for both traditional printed coupons and digital coupons. DSS
works directly with brand owners to protect the coupon's images and information
from being captured easily and accurately on copiers and desktop scanners. DSS
has experienced increased demand from brand owners for coupon security over the
last few years and very specifically over the last few months.
About DSS (Document Security Systems, Inc.):
DSS provides counterfeit prevention, RFID tracking and comprehensive brand and
digital information protection solutions to corporations, governments, and
financial institutions around the world. DSS develops and manufactures secure
printed products such as labels, packaging, ID Cards, RFID Cards and tags and
documents using their AuthentiGuard line of patented optical deterrent and
authentication technologies. The company also provides cloud computing security
services, provides disaster recovery backup, writes custom software solutions,
and integrates track and trace technologies.
For more information on DSS and its subsidiaries, please visit DSSsecure.com.
DSS is comprised of four operating units:
DSS Plastics Group - Custom RFID and Plastic ID Card Solutions (Brisbane, CA) PH:
1-415-585-9600
DSS Packaging Group - Commercial and Secure Packaging Manufacturing (Victor, NY)
PH: 585-924-8460
DSS Printing Group - Commercial and Security Printing Manufacturing (Rochester,
NY) PH: 585-341-3100
DSS Digital Group - Cloud Computing Services and Secure Digital/Internet
Documents (Rochester, NY) PH: 585-746-6958
For more information on DSS and its subsidiaries, please visit DSSsecure.com.
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For more information:Investor Relations:CenturyIR.comPhone: 212-776-1030 |
