Digital receipt and invoice submissions have become the backbone of modern loyalty and promotion programs – but they’ve also opened the door to new forms of fraud. Receipt fraud is a growing issue, especially as more promotions move online. A small percentage of fraudulent submissions can result in major financial losses for brands running large-scale campaigns. Fraudulent users are leveraging AI tools to generate fake receipts, alter transaction details, and reuse or steal legitimate submissions. What was once a manual, small-scale problem has now evolved into an automated, organized challenge that threatens the integrity of campaigns and the trust between brands and their customers.
In 2025, loyalty programs and promotions are bigger, smarter, and more competitive than ever – but unfortunately, so are the tactics used to exploit them. Receipt fraud is a growing issue, especially as more promotions move online. A small percentage of fraudulent submissions can result in major financial losses for brands running large-scale campaigns. Fraud is evolving at speed, and AI powered techniques are leading the charge. According to Experian, over a third (35%) of UK businesses were targeted by AI related fraud in the first quarter of 2025 – up from just 23% last year. Deepfakes, voice cloning, synthetic identities, and other cutting-edge tools are no longer science fiction; they’re now tools in the hands of those seeking to exploit systems at scale.
It’s not just abstract figures. Expense audit solutions like AppZen have already uncovered hundreds of fake receipts, with one recent investigation flagging 348 fraudulent claims worth $24,953. These incidents underscore a critical truth: receipt and invoice manipulation isn’t a fringe problem. It’s a rising threat that directly impacts budgets, undermines trust, and risks the integrity of your entire program. It not only costs money but also skews campaign data, making it harder to measure real ROI. It can slow down fulfillment, frustrate genuine participants, and damage brand credibility if not managed properly.
This article explores the most common receipt or invoice fraud signals, equipping you with the insights to detect threats early.
1. AI Generated Receipts
In 2025, AI is not just a tool for creation – it’s a tool for deception. Fraudulent users are increasingly leveraging generative AI to fabricate receipts that look indistinguishable from real ones, complete with authentic fonts, textures, and layouts. These AI generated receipts are harder to detect because they aren’t altered copies – they’re entirely synthetic, created from scratch. This makes them one of the most challenging threats for loyalty and promotion programs today.
2. Image-Doctored Receipts
Image doctored receipts remain one of the most common types of abuse in loyalty and promotion programs. Fraudulent users take legitimate receipts and alter critical details – such as store ID, date, time, total amount, or barcode – to make them eligible for rewards. These modifications are often subtle, designed to bypass manual checks while still appearing authentic to the untrained eye. Nowadays, such manipulations are increasingly sophisticated thanks to affordable editing tools and AI powered software.
3. Stolen or Unowned Receipts
Some fraudulent users take it a step further by sourcing receipts they don’t own at all –harvesting them from social media posts, discarded documents, or public photo dumps. These receipts are then submitted as though they belong to them, creating a false trail that can be difficult to detect. In loyalty programs, such behaviour often appears as submissions from locations inconsistent with a participant’s usual profile, making them a subtle yet damaging form of abuse.
4. Shared Receipts
Some fraudulent users operate in groups, sharing a single “winning” receipt among multiple participants to claim rewards at scale. This form of abuse – often coordinated – turns a single legitimate purchase into multiple claims, exploiting gaps in verification processes. In loyalty programs, this not only inflates costs but also undermines trust in the fairness of the system.
5. Duplicate Receipts by the Same User
Even honest participants may sometimes resubmit a receipt after a failed upload, but some deliberately resubmit the same receipt to “double dip” and claim rewards more than once. This tactic not only drains loyalty budgets but also erodes trust in the fairness of the program. Over time, unchecked duplication can significantly skew participation metrics and reward costs.
6. Fabricated or Template-Based Receipts
Wholesale fabrication is the deliberate creation of completely fake receipts to exploit loyalty programs. These receipts aren’t altered from a real transaction – they are entirely invented, often using design templates or generative tools. In 2025, this type of deception is becoming increasingly advanced as synthetic document tools become easier to access, producing highly realistic results that are difficult to detect without advanced analytics.
7. Multi-Channel Submissions
Some fraudulent users take advantage of disconnected systems by submitting the same receipt through multiple channels – email, app uploads, or partner portals – to claim rewards multiple times from a single purchase. On the surface, each submission seems legitimate, but together they reveal a clear pattern of cross‑channel exploitation that drives up costs, skews program data, and undermines participant trust.
8. Abnormal Submission Frequency
Even loyal participants sometimes make frequent submissions, but an unusually high rate of receipt uploads can signal deliberate abuse rather than genuine behaviour. Fraudulent users often exploit program rules by bombarding systems with rapid claims to maximise rewards before detection. This behaviour can strain program resources and distort analytics.
9. Out-of-Date Receipts
Some participants genuinely miss deadlines, but others deliberately reuse old receipts to claim rewards long after the offer period has expired. This type of behaviour undermines program integrity and can artificially inflate redemption rates, making it harder to measure true engagement.
10. Repeated or Similar Product Submissions
The occasional user may try to game loyalty programs by repeatedly submitting receipts for similar products – not because they genuinely purchased them, but because they know those items trigger rewards. Over time, this creates a pattern that can signal fraudulent manipulation rather than normal shopping behaviour.
11. Unqualified Product Submissions
Sometimes participants try to claim rewards for products that don’t meet program requirements, whether deliberately or due to misunderstanding. Fraudulent users, however, often target these gaps intentionally, submitting receipts for items that are similar but ineligible, to gain unearned benefits. This type of abuse erodes trust in the program and can make enforcement more difficult over time.
12. Behavioral Anomalies
Not all abuse is obvious. Some fraudulent activity hides in plain sight, slipping past rulebased systems by exploiting subtle anomalies. In 2025, advanced anomaly detection is becoming a critical tool for loyalty programs, as it uses AI and machine learning to flag suspicious behaviour that wouldn’t be caught through simple checks.
The good news? Anti-fraud solutions like Snipp’s Corral are built to detect, prevent, and mitigate these threats, in real time. Leveraging advanced AI, machine learning, OCR, and behavioural analytics, these solutions deliver a multilayered defence that protects loyalty and promotion programs from evolving fraud tactics.
Key Takeaways
- Fraud is evolving – In 2025, loyalty and promotion programs face increasingly advanced threats, from AI-generated and fabricated receipts to stolen, shared, or multi-channel submissions.
- Early detection matters – Identifying abnormal submission frequency, out-of-date receipts, repeated or similar product submissions, and other behavioral anomalies helps protect budgets and program integrity.
- Monitor the right signals – Keep an eye on patterns like doctored, stolen, or duplicate receipts, and unqualified product submissions. These behaviours may drain budgets, skew program data, and undermine participant trust. Focusing on the right signals lets you spot abuse early and protect the integrity of your promotions.
- Prevention reinforces trust – A proactive approach not only stops fraudulent activity but also strengthens participant confidence and preserves the fairness and reputation of your program.
FAQs
Q: What should I look for in a fraud prevention solution?
A: When choosing a fraud prevention solution, prioritise capabilities that address your program’s specific needs. Look for AI-powered real-time detection and prevention, multi-channel support, advanced analytics, customisable rules, and scalability. A good solution should integrate seamlessly with your existing systems while offering flexibility to adapt to evolving fraud tactics.
Q: What steps can brands take to protect future receipt-based promotions and loyalty programs?
A: Brands can protect future receipt-based promotions and loyalty programs by working with trusted tech partners who specialize in fraud prevention, setting clear campaign rules and entry limits, use AI-powered automated verification instead of only manual checks, and continuously detecting fraud by analyzing data for irregularities and hidden patterns.
Q: What are the most common types of receipt fraud?
A: The most common types of receipt fraud include edited receipts where product names, dates, or amounts are altered, reused receipts submitted across multiple campaigns, fake receipts created using templates or digital editing tools, and resubmissions of receipts taken from social media or deal-sharing forums.
Q: How can I educate my team about receipt fraud risks?
A: Education is key. Train your team to understand common fraud signals, how to use detection tools effectively, and the importance of documenting suspicious activity. Providing clear fraud policies and establishing a structured review process ensures everyone understands their role in prevention.
Q: How does Snipp help brands detect and manage receipt fraud?
A: Snipp’s advanced anti-fraud AI Solution, Corral is a comprehensive system designed to detect, prevent, and mitigate various forms of fraudulent activities across multiple channels and touchpoints. Leveraging advanced algorithms, AI, machine learning, and real-time monitoring, it offers a multi-layered defense against receipt fraud in promotions, digital coupon and loyalty programs. CORRAL detects suspicious submissions, flags anomalies, and provides actionable insights, enabling brands to prevent abuse before rewards are issued and protect overall program integrity.