Fraudsters are focused on loyalty accounts for two primary reasons: rewards accounts are a high-value item (worth $48 billion in the U.S. alone), and most rewards accounts have a relatively low security threshold, making them an easier target than traditional bank accounts.
While 72 percent of program managers report experiencing fraud, many are challenged to build a case for this type of protection internally.
How loyalty fraud impacts the bottom line
Not having loyalty fraud protections in place is a problem. Leaving your most loyal (read: profitable) customers vulnerable is detrimental to their experience and ultimately your organization’s bottom line.
The cost of loyalty fraud
Calculating the true cost of loyalty fraud goes far beyond the cost of investigations or reimbursement of stolen points and miles. After an instance of loyalty program fraud, a brand risks losing its most valuable asset – loyal customers and the lifetime value they bring to a brand.
Join Loyalty Fraud Product Manager Laura Hurdelbrink on Thursday, August 3, as she walks through a methodology that could help your brand understand the potential costs of this very real threat. Click on the link below to sign up today.