How Do You Combat Rebate Fraud?

  • October 03, 2017

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:

Serial Numbers

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

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.

Mailing addresses

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.

Sales reps

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.

Join the Discussion

Have something to add to this topic?

Want to accelerate your customer experience and markets by offering smarter, automated buyer promotions? 

You may find this success study showing how one brand achieved it insightful.

Read it here:

#casestudy #SuccessStory

The #OTAlumni Association Council is excited to announce the first 2021 speaker series: an evening all about workplace culture with @travisdutka, Culture Curator at @360insights and @OT_FBIT alumnus!

Register now:

2020 was a challenging year all around, so what are some takeaways we can bring into 2021 to maximize success?

In our first #ChannelEdge episode of the new year, special guest @TheresaCaragol reviews these and discusses her top takeaway.

Listen here:

Is centralizing and automating dealer2consumer incentive promotions into a single strategy and platform worth it?
The answer is yes! Learn how one automotive brand’s implementation accelerated new markets, revenue and smarter work processes.

Read it here:

Load More...

What do you believe is the channel’s biggest challenge today?

Upcoming Channel Events

Are we missing an event? Tell us about it.

Channel Partners
May 4-7, 2020
September 8-11, 2020
Channel Focus
Nov 17-19, 2020
360insights Relevance