Fraud Focus Three

Is your loyalty program safe - are you taking fraud seriously enough?

We all know that loyalty is a huge and booming industry. It’s an important way for brands to attract loyal customers and we know that as customers we love joining them – in the UK as many as 92% of the adult population are registered with at least one Loyalty programme, but there is, however, a rising threat to loyalty programs that has the potential to outweigh the benefits of those rewards.

How are you protecting your customer accounts?
Monitoring for suspicious activity right from the customers’ initial account creation is essential for success in the digital economy. Your customers are trusting you with their information. And of course storing card and account on file is important for your business too, as it can lift checkout completion by up to 50%.

And fraudsters are getting more sophisticated - what do you do when a transaction that turns out to be fraudulent, has no discernible signs of fraud - “Clean Fraud” is listed as the top-ranking area of concern for merchants, and account takeover, the second.

Prevention is the key to staying ahead of the potential damaging effects of loyalty fraud; waiting to fight fraud until accounts have been compromised can impact reputations and potentially the loss of loyal customers and members. Loyalty members expect to be shielded from fraud before it happens -and they should be. After all, aren't rewards members among an organisation's most valuable assets?

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