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.
For regional banks, local relationship-building efforts hinge on trust. And as it inspires loyalty through its rewards programs, the bank’s success in the marketplace is tied to the confidence customers place in it. There’s little margin for the crippling costs of fraud — in time, money and lost customers.
In an increasingly technological world, fraudsters use technology to target consumer loyalty rewards accounts so quickly and frequently that points and rewards are stolen before the customer, or the bank, has a chance to notice. Despite the inherent trust loyal customers place in their community bank, this particular company was experiencing a fraud incidence growth rate of four times the prior year. The community bank needed to address this trust erosion and reputational risk.
The bank worked with Connexions to protect its business and its customers — without sacrificing the customer experience. The bank deployed a six-month pilot designed to introduce and activate Rewards Shield® without the need for intensive client-driven customization. This reduced the time and resources needed, and enabled the bank to evaluate, approve and roll out full protection for its customers in a single quarter.
Rewards Shield’s impact was immediate, successfully identifying and preventing fraudulent transactions within the bank’s rewards program from day one. Since its launch in 2016, there have been no customer reports of loyalty fraud and all attempted reward-point theft has been identified and blocked by the tool. The bank’s loyalty program has become a much tougher target for fraudsters. As a result, the bank has experienced a 95 percent reduction in its attack rate. Not only did Rewards Shield prevent fraud, it also deterred fraudsters from even attempting attacks on the program.
Rewards Shield has proven to be fast and furious in identifying and reducing fraud while protecting customer confidence, user experience and brand reputation.