Making headlines is one thing. Making headlines because of a massive data breach is another. It’s a scenario real enough to keep any program manager awake at night. With major national data breaches seemingly in the news every day, we’ve pulled together five ways loyalty program managers can keep their customers satisfied within their own service recovery process if (and when) a data breach occurs.
If you’ve heard about recent national data breaches, you may be wondering, what does this mean for my financial assets, and how does this impact me? As loyalty fraud experts who have been in the business of helping our clients protect their most loyal customers from fraudulent activity for 10 years, we know a thing or two about how impactful large breaches can be, and what needs to be done when a breach occurs. In this post we’ll share with you our best tips on what you should do to protect yourself and your customers from loyalty fraud after such breaches.
Our loyalty fraud team partnered with Dark Web expert and Director of Security Research Jason B. Lancaster at SpyCloud to take a deeper dive into the Dark Web. As part of our loyalty fraud prevention series, this blog post will discuss the going rate for rewards accounts bought and sold on the Dark Web and specific steps loyalty program managers should take to protect members against loyalty fraud.
Financial institutions have upped the ante when it comes to protecting customers against fraud. Each year, banks employ increasingly sophisticated measures making it more and more difficult for thieves to penetrate customer accounts. And it’s working. The American Bankers Association reports that for every $10 in attempted deposit account fraud, banks’ anti-fraud protection measures stopped $8.
Loyalty fraud is evolving. Fraudsters are getting smarter, and so must the solutions that protect brands – and loyal customers – against them. Using artificial intelligence is no longer the future of fraud protection: it’s a critical pillar.
Customers expect financial institutions to have the highest level of fraud protections in place, but online fraud is constantly evolving. And while financial institutions have rigorous systems in place to prevent banking fraud, one very valuable asset is often left exposed: loyalty rewards accounts.
Rewards points and miles hold true cash value. However, with fewer monitoring and protection measures in place than traditional bank accounts, the unfortunate reality is that loyalty reward programs are seen as easy targets by fraudsters.