Despite increasing public awareness and recent high-profile cases of fraud, loyalty programs continue to be an easy target for fraudsters, who use stolen customer identities and credentials to pilfer points and miles from loyalty program members.
But how damaging is this trend to your customers and your company? Connexions Loyalty partnered with Ipsos Public Affairs to conduct a nationwide poll of more than 1,600 shoppers (who were members of at least one loyalty program). We found that 93 percent assumed that loyalty brands were proactively protecting them against threats. And one in three expected to be reimbursed for lost points or miles in the event of a breach.
But its not just the tangible losses that companies need to consider. There are intangibles like reputation and customer experience that loyalty programs should be measuring.
Once the full financial impact of fraud is known, company leaders will be armed with the information needed to make smart choices about funding effective fraud prevention solutions.
To begin tackling this challenge, join me at the first-ever North American Loyalty Fraud Prevention Association (LFPA) conference in Atlanta, where I’ll talk about measuring the true cost of fraud. This event brings together industry professionals and experts to share insights and tactics in the increasingly heated battle against a rising threat.
Join the conversation and be at the forefront of this challenge. Register at the link below for the LFPA Conference in Atlanta, Georgia, May 24-25.