With 3.3 billion loyalty program members in the U.S. (we know, that’s almost 10 times the nation’s entire population), it’s predictable that the $48 billion in loyalty currency is attracting its share of criminal attention. That means rewards dollars are just as susceptible – and in some ways, even more so – to fraud as real dollars. Fraudsters are stealing airline points to book free flights and even draining loyalty card balances through mobile apps. And because rewards accounts don’t share the same level of security and protection as traditional financial accounts, they’ve become highly covetable targets for hackers.
That’s not to say that businesses can’t take steps to protect their customers and build greater security into their loyalty programs. In the infographic below, we share some ways to combat loyalty fraud, and the types of loyalty fraud brands should be looking out for.