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.
Mistakes happen in life and in business. Regardless of top-notch products, systems and procedures, training and good intentions, poor customer experiences are inevitable. While businesses can’t always undo or fix that bad experience, they can do their best to not only apologize but mitigate the situation through a customer recovery effort.
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.
Our loyalty fraud team recently 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 cover: the Dark Web Market, how fraudsters are selling rewards points and miles on the Dark Web, and what happens to member data after a breach has occurred.
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.
It’s no secret that fraud is prevalent on the internet, from phishing scams to loyalty account takeovers. But what happens after a fraudulent loyalty account takeover? To start, hackers often take to the Dark Web, the often seedy underbelly of the internet where they can auction off stolen loyalty account logins, points and miles, even merchandise that they’ve fraudulently redeemed.
How much could a single instance of rewards program fraud cost your brand? The hard costs (replacing stolen points and miles) may be clear, but the hidden costs (negative word of mouth, lost customers) may be harder to calculate.
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.
A Fortune 500 community bank nearing its 150-year anniversary has hundreds of billions of dollars in assets and operates thousands of financial centers across several states.