Everyday Rewards Fraudsters Exploit Loophole

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By Published On: February 12, 20240 Comments

Everyday Rewards launched in New Zealand with a rocky start as fraudsters used multiple accounts to rack up free points.

Everyday Rewards launched in New Zealand last week as part of Woolworth’s $400m NZD brand transformation across the ditch and some savvy shoppers found a loophole that enabled them to claim hundreds of dollars worth of free perks.

Announced in July last year, the New Zealand arm of Woolworths is undergoing a $400 million NZD transformation. Operating as Countdown since 2011, the supermarket has started to rebrand to Woolworths in a three year investment plan. The Everyday Rewards launch on February first is the latest in a series of changes the chain is set to undergo in the next three years. 

The launch of the loyalty program in New Zealand was not as seamless as the supermarket would hope.

Woolworths was offering 1000 points for downloading the app and registering an account. A $15 voucher to spend in-store or online was given for every 2000 points. Some users created multiple accounts and transferred the free bonus points over to a main account.

The New Zealand Herald reported that users were banking up to $150 worth of vouchers by using the loophole.

Woolworths has since disabled the points sharing feature.

“We have noticed some of that behaviour and we will be locking down those accounts,” said Mark Wolfenden, director of loyalty at Woolworths. “This should not be being used for fraudulent purposes, and we do have some measures in place to stop this.”

A spokesperson for Woolworths has stated that the vast majority of members have been using Everyday Rewards in the right way. “Overall, we’re really pleased with how the launch has gone and thank our members for their support.”

Upcoming phases of the supermarket’s transformation programme include investing in making stores safer with a $45m plan for adding security measures and upskilling team members. 

About the Author: Rosalea Catterson

Rosalea is the Editor of Power Retail. With a keen interest in consumer behaviour and tech, she covers everything ecommerce and hosts the Power Retail Power Talks Podcast.

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