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Good Points Blog


How much will loyalty fraud cost your organization?


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.

The growing ease and accessibility of the internet has greatly enhanced rewards programs and loyalty marketing. Brands can build digital rewards stores, offer a variety of customizable rewards options and target specific customer groups based on interests and online behaviors. 

Despite these technological advancements, the growing use – and misuse – of the internet can leave loyal customers vulnerable to online fraudsters looking to hack their accounts and steal valuable rewards points and miles.

Loyalty and rewards fraud can have devastating effects on a brand: from poor customer experiences to lost customers and revenue.

To help loyalty program managers and brands build a case internally for increased loyalty fraud protections, Loyalty Fraud Product Manager Laura Hurdelbrink shares a fraud calculator to determine the true, tangible cost of loyalty fraud.



Rewards program fraud can deteriorate a brand – from lost profits used to replace stolen points to eroding the customer experience and losing loyal members. Want to calculate the true cost of loyalty fraud for your organization? Click here to access Connexions Loyalty’s loyalty fraud calculator.

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Tags: blog, loyalty, fraud

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