Handling client-side drops

Hey everyone, I wanted to know how do tycoon games like rarity factory or any merge tycoon game handle client sided drops without them being exploitable? Like do they just spawn them on the client and fire an event to the server when .Touched? Thanks in advance!

I assume the server would fire a request to the client telling them what to spawn and where to spawn it. The server would then wait for that object to be collected before awarding the player the reward initially set when the server fired the client, NOT what the client says it is

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How would the server know what has been collected though, could it be that the moment you tell the client to spawn the drop the server sets an ID to that drop and stores it somewhere In a table, and after the player has collected something, the server checks if the id is the same and rewards the player?

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