Federal prosecutors say 35-year-old Marshall Lampkin spent years quietly manipulating a flaw in Kohl’s Cash, the popular rewards program. Lampkin would purchase items in-store using Kohl’s Cash, then immediately make the same purchase online with the same rewards before the system updated. He returned the in-person items and pocketed fresh Kohl’s Cash effectively duplicating his spending power.
The Department of Justice revealed Lampkin’s scheme netted nearly $200,000 (₹1.67 crore) and involved more than 100 fraudulent transactions at 40 stores across 13 states, including Colorado, Wisconsin, and Utah.
Fraud Across State Lines
Court records show Lampkin’s tactics were consistent, precise, and calculated. In Janesville, Wisconsin, in late 2021, he waited just one minute between purchases, generating nearly $1,000 (₹83,000) in rewards. His largest single take occurred in March 2022 at a Kohl’s in Clinton, Utah, where he pulled off a $6,000 (₹4.98 lakh) transaction.
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Lampkin’s movements were eventually tracked by store surveillance. Investigators discovered that merchandise purchased online was stored in a Missouri storage unit, where Lampkin allegedly planned to resell the goods for profit.
The Cost of Consumer Trust
For retailers, the crime raises a deeper issue: the fragility of loyalty programs designed to encourage spending. “It’s almost like laundering—how do I turn Kohl’s Cash into real cash?” said a business professor at Marquette University. He noted that while $200,000 (₹1.66 crore) may not cripple a billion-dollar chain, fraud of this nature threatens consumer trust and forces costly upgrades to store systems.
The case underscores how digital loopholes in rewards programs can be exploited when oversight lags behind evolving consumer technology.
A Swift Conviction, A Waiting Sentence
Jurors in Missouri needed just seven minutes to convict Lampkin on five counts of federal mail fraud. He now awaits sentencing in December. Prosecutors did not comment on the potential penalty, but federal guidelines suggest a lengthy prison term.
Attempts to reach Lampkin for comment were unsuccessful. Kohl’s, which has not issued a public statement, faces questions over whether its widely used rewards program may undergo changes after one man exposed its vulnerabilities across 13 states.