Published: February 6, 2020
Reading time: 2 minute read
Written by: Kayla Parker

Companies invest a lot in building programs that benefit their best and most loyal customers. In an intensely competitive global market, with rising customer expectations and frequent price promotions encouraging consumers to switch to the best offer, these loyalty programs are an essential part of a brand’s business strategy. 22 percent of customers shop exclusively with brands of whose loyalty programs they are members, making loyalty programs incredibly valuable. Fraudsters have noticed, and loyalty fraud attacks are growing at a very rapid rate, up 89% year over year during the first quarter of 2019. 

The value of these loyalty programs and the points saved by consumers has increased and merchants have grown more aware of their tremendous business value. However, fraud prevention in this area has not kept pace. For companies investing in growing their e-commerce business, every dollar of fraud can significantly impact their bottom line. Fraud attack rates against the food and beverage industry rose by 41% over the last year, further highlighting the need for brands in this industry to ensure their fraud prevention strategy is in place. In order to stay one step ahead of opportunistic fraudsters, brands like are partnering with Forter in order to ensure their loyalty and customer benefit programs are protected from all forms of fraud and abuse. 

Ensuring Only The Good Customers Reap the Rewards

For, providing referral codes and loyalty program discounts for valued customers enhances their brand’s reputation and differentiates them from other companies. However, they discovered that these benefits were not only extremely popular with their best customers, but also with fraudsters and good customers abusing the system. 

In order to ensure that fraudsters do not exploit the system and that customers don’t abuse their business policies, partnered with Forter, and the results speak for themselves. With 100% real-time decisioning along every touch point throughout the customer journey, Forter’s fraud prevention solution never negatively impacts the customer experience or adds delays to fulfillment times. enjoys a 99.5% approval rate and their chargeback rate has diminished to just 0.17%.

Forter’s fully integrated fraud prevention platform protects’s business from fraud and abuse, while ensuring only their legitimate customers reap the benefits their rewards programs offer. 

“Our loyalty program allows us to say thanks to our customers by rewarding them with better benefits and a better experience while also enabling us to stay ahead of the competition. Features like ‘Tell-a-friend,” rewarding customers for referrals, are extremely popular, but are also a target for fraudsters and bad actors,” said Doug Ferreira, Director, Financial Operations for In partnership with Forter,’s loyalty program fraud has been reduced by more than 60%, while they were simultaneously able to build stronger relationships with their good customers.

For more information on how Forter has helped mitigate fraud and protect their business policies, read our case study or watch the video below.


2 minute read