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As traditional banks and merchants work to make their systems harder to penetrate and steal from, hackers are turning their attention to softer targets and alternate forms of value. With reward points and miles worth of over $48 billion in the United States alone, loyalty programs are advantageous targets. Read on to learn more about the true cost of fraud and how to protect your loyalty program.
Consumers equate reward points with dollars, and they look to you, as the loyalty program owner, to protect those dollars. They assume their reward points are safe. But when the trust is broken, impact to the brand’s reputation and loyalty program can be severe. In a recent study, 25% of loyalty members indicated they would cancel their membership if they experienced fraud, and 17% would stop buying from the brand altogether.
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