Fraud Suspicious Redemption Activity Report

If you do not see this report in your Report Center, you do not currently have permission to run it. If you feel that this report could be useful for you, but it doesn’t appear on your list, please contact your user administrator for assistance.

IS THIS REPORT RIGHT FOR ME?

Uses

* Detects stored value (gift) cards that may have fraudulent activity on them
* Note that this report only provides guidance, the cards identified are not always being used fraudulently.
* This report is trying to identify suspicious activity based on three potentially fraudulent uses of gift cards.

Restrictions

Can only do one of the following:
* Run for 35 days for all stores.
* Run for unlimited days for one store.

This report is called Suspicious Redemption Activity because cards that appear on the report output have activity on them that may indicate some level of fraud. For example, if you are having a promotion where cashiers are rewarded based on selling the most gift cards and a guest pays cash for a check, the cashier may “buy” a gift card for the amount of the cash left, and then redeem the gift card to pay for the check. This type of behavior would falsely inflate the gift card sales for this cashier. This report would show these cards as they are both sold and redeemed on the same day and sold and redeemed by the same cashier.
Many different types of activities are shown in this report. Given your individual restaurant circumstances, some/many/all may be indicative of behavior that bears further investigation. This report captures cards whose behavior meet specific criteria. Specifically, it captures cards sold and redeemed on the same day, cards sold and redeemed by the same cashier, and cards redeemed multiple times by the same cashier. You can change the filter to identify cards based on many different criteria, and you do need to have some knowledge of your restaurant‘s typical gift card redemption activity to set it up effectively.
We recommend that this report only be viewed by members of the corporate office staff to avoid broadcasting our method of detecting fraud to restaurant staff members.
When you first run the report, guess as to what you think the correct settings are. You can always go back and adjust the filter when you see your first and subsequent reports.

SAMPLE OUTPUTS

All Stores, Limited Days

HOW DO I INTERPRET THIS REPORT?

Interpretation Summary

There are many columns in this report, and understanding the use of each one is important in identifying potential fraud. The filter settings greatly affect the report output and understanding your restaurant operations is essential in selecting the appropriate values. To identify whether a card is a good candidate for being fraudulent, look at the Same Day Sale/Redeem, Same Cashier Sale/Redeem, # Redeems, # Void Redeems, # Redeems with Top Cashier, and % Top Cashier columns. These columns are what we will refer to as “indicator columns” where cards will show up if any of the input settings are met. For example, if guests tend to come and redeem a gift card at the bar before redeeming it to pay for their meal, you would want to set the “Multiple Redemption Threshold” at three to select cards that were used three or more times in one day.

For the wallet selection, choose your stored value wallet. This may be named “Gift Card”, “Stored Value”.

When choosing the other conditions, bear in mind that the report generated will show a card if it fulfills any of the conditions defined. We recommend checking both the Same Day Sale/Redeem and the Same Cashier Sale/Redeem boxes to see both of these types of activity, as they are both indicators of fraud. The Multiple Redemption Threshold condition requires some knowledge of your guests’ behavior. As outlined above, if guests tend to redeem a gift card at the bar before redeeming it at dinner, you would want to set this condition at three.

We’re essentially looking for cards with abnormal activity, so you need to set up the filters to find cards that fall into an “abnormal” level of activity based on your individual restaurant‘s average activity.

This report is sorted by the Same Day Sale/Redeem column, followed by the Same Cashier Sale/Redeem column. Logically, the top-most cards are those that are most suspicious of being fraudulent. If a card has both a Same Day Sale/Redeem and a Same Cashier Sale/Redeem, it is worth a second look. The “top cashier” value is based on the POS login number of the cashier who is completing the transaction. If you use common or shared login numbers, such as having one number for all bartenders to use, keep in mind that the “top cashier” may represent many people and therefore give you false indications of fraud. If you have a verifone terminal, a single cashier id is often used as well.

To continue the investigation, then run a General Card Activity Detail Report to look at the card’s individual transactions. It is also worth noting that if a card is registered this does not necessarily mean it is not fraudulent. Always take a second look at the most suspicious cards.

Column Name	Definition
Card Number	The card (or account) number - this is a unique identifier but could appear multiple times for different transactions.
Card Template	The name of the card. This could be “Gift Card” or “Gift/Loyalty Card” Please see: What are Card Templates and Tiers.
Tier	The Paytronix subsection of the card template (for a further discussion of card templates and tiers, see: What are Card Templates and Tiers.)
Same Day Sale/Redeem	“Yes” if the card was sold and redeemed at the selected store(s) on the same day during the time period of the report
Same Cashier Sale/Redeem	“Yes” if the card matches by being sold (at any time) and redeemed at the selected store(s) during the time period by the same cashier
# Redeems	The number of redemptions at the selected store(s) from the selected wallet during the time period for which the report was run
# Void Redeems	The number of void redemptions at the selected store(s) from the selected wallet during the time period for which the report was run
# Redeems with Top Cashier	Shows how many redemptions at the selected store(s) from the selected wallet were done by the cashier that used the card the most (in other words the “Top Cashier”)
% Top Cashier	Shows the overall percent of time the card was used by the “Top Cashier” (i.e., 100% means all of the wallet redemptions were done by the “Top Cashier”)
Top Cashier ID	Information gathered from the store’s POS: specifies the Cashier ID for the “Top Cashier”
Cashier Store Code	Information gathered from the store’s POS: specifies the store code associated with the “Top Cashier”
Cashier Store Name	Information gathered from the store’s POS: specifies the store name associated with the “Top Cashier”
Card Status	Status of the card. This can be active, registered, terminated.
Is Registered	Shows whether the card is registered or not
First Name	Guest‘s first name (if the card is registered)
Last Name	Guest‘s last name (if the card is registered)

I LIKE IT, SO HOW DO I RUN THIS REPORT?

First enter the date range for which you’d like to run the report. The report can be run for unlimited days for one store or for up to 35 days for all stores.
- Quick Date: Here you can choose Yesterday, Today, the current month, or last month. If you have set up by your custom fiscal periods, you may also choose to run the report by fiscal period.
- Manual Date Entry: Here you can type in your desired date range or find the day by clicking on the calendar icon to the right.
Check the “All” box if you would like to include all stores. You can also enter a specific store code to see one store or select a store group from the drop down box.
Select the desired card template from the drop down menu or leave “All” selected.
Select the desired wallet from the drop down menu.
Check the Same Day Sale/Redeem box if you would like to see cards sold and redeemed on the same day within your specified date range.
Check the Same Cashier Sale/Redeem box if you would like to see cards sold and redeemed by the same cashier and one or more redemptions occurred within your specified date range.
Enter the number of redemptions, where, if met or exceeded, the cards will appear on this report.
Click Submit!

Note: This report is updated in real time.