The launch of Woolworths’ new rewards system has been marred by “fraudulent behaviour”, the supermarket chain has confirmed.
Woolworths – which formerly traded as Countdown – announced a new loyalty programme called Everyday Rewards to replace OneCard late last year. The change kicked in from February 1.
But the transition hasn’t been entirely seamless.
The loyalty programme offers incentives for new users, with 1000 points on offer for members who download the app.
However, some customers found and exploited a loophole in the offer. Users can gift their points to others – so some shoppers reportedly made a number of fake accounts, claimed the points and then gifted them to their own main account.
For every 2000 points an account accumulates, a $15 voucher was awarded.
“I heard about people making multiple burner accounts and stocking them each with $150-plus in rewards,” one man told the New Zealand Herald, adding he was surprised it was so easy.
Woolworths has acknowledged the issue.
“The vast majority of our members have been using Everyday Rewards in the right way but unfortunately we were made aware of some fraudulent behaviour in the days following launch,” a Woolworths spokesperson said.
“We have taken steps to counter that behaviour and now have measures in place to prevent any further fraudulent activity.
“Overall, we’re really pleased with how the launch has gone and thank our members for their support.”
The Everyday Rewards terms and conditions state: “We reserve the right to monitor your purchase history to ensure that any Member Benefits are accumulated legitimately.”
Penalties were available for anyone who breached the rules, including the reversal of benefits.