Loyalty program members, especially those in the financial services industry, expect those companies to guard their personal information in the most robust way possible. And while 72 percent of loyalty program managers report experiencing fraud, many are challenged to build a case internally for this type of protection.
Take the case of two top financial services companies. Internal program managers were increasingly experiencing the damaging effects of loyalty program fraud. Fraudulent activity was eroding brand reputation and causing friction within the program and overall customer experience. To overcome these challenges, each brand brought in Connexions Loyalty to implement Rewards Shield, its loyalty program fraud prevention solution.
The situation – Loyalty fraud goals and challenges
Each financial institution had its own goals, challenges and priorities related to loyalty program fraud prevention, including:
- Saving fraud mitigation costs
- Eliminating reputational damage
- Removing friction from the customer experience
The problem – By the numbers
One Fortune 500 bank’s rewards program fraud was growing at a rate of 4x year over year. The other, a multinational financial services institution, was experiencing unacceptable reputational costs, compounded with a 100 percent projected increase in fraud via Card Not Present (CNP) transactions over the next three years.
At that point, Connexions Loyalty implemented its loyalty fraud detection and prevention solution, Rewards Shield, and the results were compelling.
Rewards Shield helped the two financial institutions:
- Uncover a whopping 271 percent increase in fraud incidences
- Prevent $800,000 worth of loyalty program fraud within 3 months
- Experience a 95 percent reduction in fraudulent attack rates
For more details and to learn how Connexions Loyalty’s Rewards Shield is protecting banks’ most loyal customers from the damaging effects of loyalty program fraud, download our case studies.