Fake Doritos Coupons cost Frito-lay millions

June 21, 2010
The company that brought us the Frito Bandito is battling real-life bandits who are circulating fake Doritos coupons on the Internet, likely costing Frito-Lay millions of dollars.
The phony coupons, which offer consumers a free bag of Doritos tortilla chips without buying anything, first showed up on Web sites in 2009, but were quickly removed after Frito-Lay notified site owners, according to company spokeswoman Aurora Gonzalez. Similar coupons have surfaced in the last two months and have spread through e-mail.
Now the coupons are turning up by the thousands at retailers across the country. "It's exponentially larger than any other fraudulent redemption we've seen before,"Gonzalez said.
Frito-Lay has dealt with counterfeit coupons in the past, but this case is different.
The coupons have been distributed as an attachment to e-mail messages, which people forward to their friends to pass on what appears to be a good deal. Eventually, the coupons get forwarded so many times that the scam becomes so widespread it's difficult to stop and nearly impossible to trace.
Bud Miller, executive director of the non-profit Coupon Information Corporation, said most coupon scams get stopped before they have a chance to do much damage, but they can be very costly.
"A single counterfeit, if it goes viral, can easily cost a million dollars,"Miller said.
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