In the 1990s, McDonald’s turned its Monopoly promotion into one of the most successful marketing campaigns of the decade.
Customers could collect game pieces to win prizes ranging from free burgers to large cash rewards. But behind the scenes, a major fraud operation was unraveling.
Jerome Jacobson, the head of security for the marketing company Simon Marketing (the firm managing the Monopoly promotion), used his position to rig the game.
Between 1989 and 2001, Jacobson stole high-value game pieces and distributed them to a network of accomplices, earning kickbacks from their winnings.
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How the Scheme Worked
Jacobson had access to the winning game pieces before they were attached to McDonald’s products. His scheme involved:
- Distributing Winning Pieces: Jacobson gave winning pieces to a network of friends, relatives, and even strangers who agreed to share a percentage of their winnings with him.
- Layering the Scam: Accomplices claimed prizes through fabricated stories to avoid suspicion, such as saying they found the pieces on discarded cups or wrappers.
- Targeting Big Prizes: Jacobson reserved high-value prizes, such as $1 million cash winnings, for his inner circle.
Over more than a decade, the fraud siphoned $24 million in winnings from legitimate players.
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The Investigation That Brought It Down
The scam unraveled in 2000 when an anonymous tip reached the FBI. Agents launched Operation Final Answer, named after the popular game show Who Wants to Be a Millionaire? Investigators:
- Tracked Winners: They identified suspicious patterns among winners, such as geographical clustering and connections to Jacobson.
- Staged a Sting: The FBI created fake promotional events to interview “winners,” uncovering inconsistencies in their stories.
- Gathered Evidence: Wiretaps and surveillance exposed Jacobson’s network and revealed the full extent of the fraud.
By 2001, 53 people were indicted, including Jacobson and his accomplices. Jacobson pleaded guilty and was sentenced to 37 months in prison.
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The Fallout for McDonald’s
While McDonald’s was not involved in the fraud, the scandal damaged its reputation. The company responded quickly:
- New Promotions: McDonald’s launched a $10 million giveaway to assure customers the game was fair.
- Rebuilt Trust: The company strengthened its internal controls and continued the Monopoly promotion with tighter security.
Despite the scandal, McDonald’s maintained public trust and successfully revived the Monopoly campaign in later years.
A Game of Lessons
The McDonald’s Monopoly fraud shows how internal corruption can compromise even the best-laid corporate plans. It also highlights the importance of robust oversight and transparency in promotions that rely on customer trust.
For McDonald’s, the quick response helped preserve its reputation and allowed the brand to bounce back stronger.
