EXHIBIT 101 / THE HANDBOOK
EXHIBIT#18SEVERE
Management & OwnershipComposite score: 75/100

Coupon and Promotion Fraud

Counterfeit and duplicated coupons erode margin on every redemption, often at industrial scale once a code leaks online. A single shared code can cost more than the promotion it supported.

Risk Scores

Frequency80
Financial Loss70
Detection Difficulty70
Prevention Ease60
Composite Score75/100

Perpetrator Roles

CashierIT / Tech

Affected Formats

QSRFast Casual

Detection Difficulty

Moderately difficult. Requires consistent audit procedures and data analysis to surface.

HOW IT WORKS
Cash sales completed
Sales not entered in POS
Revenue understated
Tax filing reflects lower sales
Audit triggers investigation
Handbook Chapter · F-018

Sales Tax Evasion

Full chapter with identity card, real examples, warning signs, detection and prevention guidance.

Exhibit AI Detection

AI-Powered Detection Design

Track redemption volume against distribution volume for every coupon code.

Prevention Guidance

Audit Controls

Enhanced audit controls required. Standard procedures are insufficient — implement layered verification.

Technology

Automated POS monitoring, real-time exception reporting, and AI-driven anomaly detection significantly reduce exposure.

Culture & Training

Staff awareness programs, anonymous reporting channels, and clear consequence policies deter opportunistic fraud.

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