Price Matching Fraud

Price matching fraud is a deceptive practice wherein a fraudster takes advantage of a retailer's price matching policy by presenting a counterfeit advertisement or listing showing a significantly lower price than the manufacturer's suggested retail price (MSRP). This allows the fraudster to purchase items at a substantial discount, costing the retailer both in terms of lost revenue and potential damage to their reputation.

One prevalent method involves the creation of fake online seller accounts on platforms like Amazon. The fraudster lists an item for sale at an artificially low price. They then use this listing as proof of the lower price when requesting a price match from a legitimate retailer. Because many retailers strive to stay competitive by offering to match lower prices found online, they may not always verify the authenticity of the advertised price before honoring it.

This type of fraud not only impacts the financial standing of retailers but can also lead to broader market distortions if not addressed. Detecting and preventing price matching fraud requires retailers to:

Addressing price matching fraud is crucial for retailers to maintain fair pricing strategies and ensure that legitimate customers benefit from price matching policies without being undercut by fraudulent activities.