How Do You Combat Rebate Fraud?
Rebate fraud is more common than many manufacturers realize, and without a comprehensive data management platform, the process of validating claims and catching fraudsters can be extremely challenging for manufacturers and distributors. Never given much thought to how you can combat rebate fraud?
According to a 360insights led study, fraud accounts for approximately 4 to 7 percent annually of channel marketing spend. A significant amount.
In order to save valuable channel marketing dollars, we believe that fraud detection should be a priority. So, to better combat fraud in your rebate program, here are a few of the most effective methods of tracking fraud that we’ve employed within our audits:
This method requires you to track claims data from serial numbers on products that have been sold. Serial numbers are a unique piece of data to be indexed and captured from the transaction because they can identify duplicates or off-format serial numbers used in fraudulent claims. Essential to uncovering fraud.
Store invoices are one of the most accurate and effective way to capture transaction data. They help detect suspicious claims based on different store invoice formats – other than what is used by the company – or invoice serial numbers that are out of line with claimed invoices that were submitted.
Capturing the customer’s mailing address from invoices is another effective method. This can measure the customer’s geographic location as a opposed to having the postal code of the store on claims submitted. Mailing address data can be helpful for manufacturers to flag certain locations in the event of suspicious incentive claims.
Most sales reps are aware of top producers on retail accounts, their intel is very important. Having a sales reps insight goes a long way to detecting fraudulent claims.
Combating Rebate Fraud
These are just a few examples of fraud detection that can aid your channel marketing efforts and reduce the amount of fraud you pay out. Incorporating these tactics will alleviate the immense administrative burden and remove the guesswork from manual random auditing. It’s time to ensure your organization is combating fraud effectively and reaching its full potential.