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LOYALTY FRAUD – POTENTIAL FOR ABUSE MAKES PROGRAMS VULNERABLE
The loyalty business is booming and with it the size of the prize for fraudsters. In 2012, the estimated value of unredeemed points in U.S. loyalty programs was $48 billion. More recent estimates of loyalty program liability have skyrocketed to $225 – $350 billion, making programs an ever more tempting target.
Loyalty fraud occurs when a reward program, run by a business to encourage brand loyalty, is....
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