Loyalty fraud is on the rise. Forter’s Seventh Edition Fraud Attack Index reported an 89% increase in fraud attacks against loyalty programs over the last year alone. Without the proper precautions in place to secure your programs, they are easy targets for fraud and abuse.
Loyalty Programs by the Numbers
- Estimated value of loyalty points in the US alone: $140 billion
- Estimated value of rewards that go unclaimed: $100 billion
- Estimated value of rewards fraudulently redeemed each year: $1 billion
- Customers that shop exclusively with brands where they are loyalty members: 22%
Loyalty programs are highly valuable assets to your business. They aim to reward your business’ most valuable customers. However, breached or hacked accounts could destroy your brand reputation and diminish customer lifetime value (LTV). The average impact of a data breach is a 5% drop in share price and 7% loss of customer base.
The time to protect your business and your customers is now.
“Features where customers earn rewards for referrals are an extremely popular part of our loyalty program, but also a target for fraudsters. Forter helped us instantaneously identify fraudulent transactions, reducing loyalty program fraud by more than 60 percent while also building stronger relationships with our customers.” — Doug Ferreira, Director, Financial Operations, delivery.com
Introducing Forter’s Loyalty Program Protection Solution
To help enterprises protect their most valuable customers and their businesses, Forter is proud to introduce our Loyalty Program Protection Solution. Forter’s integrated fraud prevention platform secures every touch point across the entire customer journey.
- Payment Protection protects loyalty rewards redemptions along with payments (e.g. credit cards linked to the account) from fraud by accurately determining the trustworthiness of each transaction and the user behind it.
- Account Protection identifies and blocks attempts to create fake accounts, account takeovers to steal points, or exploit saved customer data (i.e. credit cards).
- Policy Abuse Protection prevents financial losses due to exploitation of coupons and promotions, discounts, or referral bonuses – assessing trust at every point of interaction.
Forter’s Loyalty Program Protection secures your loyalty point programs and all account-related activities.For more on how Forter’s Loyalty Program Protection Solution works to protect your business and your customers, download our Loyalty Program Protection Solution Brief now.
Interested in learning more about the details of Loyalty Program fraud vectors and the impacts to your business?