Stop Loyalty Program Fraud in Its Tracks With These 6 Strategies

From what I’ve seen in conversations with prospects, the traditional security measures they have in place for their in-house reward programmes aren't keeping pace with fraud tactics.

In this comprehensive guide, I’ll expose the risks facing loyalty programmes and give you actionable steps to protect your customers against loyalty programme fraud. Whether you're dealing with account takeovers, points hacking, or redemption fraud, here you’ll find proven methods to detect suspicious activity early. 

Contents:

• Key Takeaways

• What is Loyalty Fraud?

• Why is Loyalty Fraud on the Rise?

• Types of Loyalty Fraud & How They Happen

• Industries Most Affected by Loyalty Fraud

• Warning Signs and Detection

• Who Suffers From Loyalty Fraud?

• 6 Strategies: Loyalty Fraud Detection and Prevention

• Monitoring System Implementation

• Future of Loyalty Programme Security

   

Key Takeaways

1. Understanding the Threat Landscape

• Loyalty fraud costs businesses over $1 billion annually

• Three primary threat sources: external hackers, internal staff, and customer exploitation

2. Critical Vulnerabilities

• Basic authentication methods are no longer sufficient

• Legacy systems can't keep pace with modern threats

• Internal access controls often lack proper oversight

• Customer education gaps create security weaknesses - informed and educated customers are your first line of defence 

3. Industry-Specific Risks

• Travel sector faces $1 billion in annual fraud losses

• Retail particularly vulnerable to gift card conversion schemes

• Financial services seeing 53% increase in fraud attempts

4. Essential Protection Strategies

• Multi-factor authentication blocks 99% of phishing attempts

• Real-time monitoring crucial for early detection

• Cross-industry collaboration improves threat identification

• AI-powered solutions enhance fraud pattern detection

5.Future Security Trends

• AI and machine learning becoming standard tools

• Biometric authentication evolving beyond physical verification

• Increased focus on cross-sector data sharing

• Shift from reactive to proactive security measures reflected in increased anti-fraud budgets
  
  

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What is Loyalty Programme Fraud?

At its core, loyalty programme fraud involves exploitation of reward systems. But this can look different depending on where the threat originates. 

External threats typically involve hackers breaching security measures to steal loyalty points or data. Bad actors can also be found in the customer base exploiting programme loopholes, like gaming referral systems or sharing account access. This is known as friendly fraud. Lastly, and perhaps most shocking is internal fraud, involving employees with privileged access claiming unredeemed points or manipulating reward systems.

Why is Loyalty Fraud on the Rise? 

In my opinion, it comes down to two things. First of all, many businesses still protect their loyalty programmes with basic authentication methods. Yet fraudsters employ increasingly sophisticated tactics to take advantage of such vulnerabilities. 

Secondly, low awareness exacerbates the problem. And this is in spite of the dramatic rise and cost of loyalty and rewards fraud in the past decade.

Which as it happens, has an estimated global cost of up to $3 billion per year.

And in spite of being widespread across all businesses, just over a quarter of all documented online frauds in 2021 targeted loyalty schemes. 

I’m fairly certain this number will keep rising if businesses continue overlooking security measures for their loyalty rewards programmes.

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Types of Loyalty Programme Fraud & How They Happen

Loyalty programme fraud can happen in several different ways. As I mentioned earlier, there’s external, friendly and internal fraud. These focus more on where the fraudulent activity occurs. Still important to know but then there’s also different types of loyalty programme fraud. Varying from data breaches and fraudulent transactions to points theft, abusing points redemption systems, account takeovers and identity theft. 

Once we understand the patterns of suspicious activity and where they originate, we can begin to put in place effective fraud prevention strategies. But first, let’s look at the motives behind bad actors like external hackers, customers and employees. 

External Fraud  

Every loyalty account contains a goldmine of personal data - from email addresses to credit card details. When breached, this sensitive information often ends up sold on dark web marketplaces, at great financial gain for hackers. Aside from the damage to people whose privacy has been exploited, external fraud inflicts lasting damage to customer trust and brand reputation. 

Cybercriminals employ multiple attack vectors simultaneously. Through sophisticated phishing schemes, they manipulate customers into revealing login credentials. Once they gain access to loyalty accounts, they harvest everything from email addresses to credit card details. 

What's particularly concerning is the rise in identity theft. Fraudsters specifically targeting loyalty programmes may exploit the fact that many still rely on basic authentication methods. They could use stolen credentials to create fake accounts, drain reward points, and use compromised accounts for money laundering through points conversion.

Internal Fraud  

Perhaps the most concerning trend across enterprise loyalty programmes is internal fraud. While external threats often grab headlines, it's the insider threats that frequently cause the most damage.


Company insiders commit over half the total amount of fraud and cost businesses over $1 billion annually. They understand the security protocols and know how to exploit them. 

What makes internal fraud particularly dangerous is the level of access these individuals have. Employees with backend privileges know how to manipulate loyalty accounts without triggering alerts. They might gradually siphon reward points from dormant accounts or generate and redeem points through fake accounts.

Through our work with major brands with in-house reward programmes already in place, we've identified several critical patterns in internal fraudulent activity. It often starts small - an employee checking their own reward point balance or making minor adjustments. Hence why proper account monitoring and robust security measures are essential for preventing this type of fraud. 

Data Breaches

A data breach is so much more than just stolen points.

The financial impact is staggering. In 2022, the average cost of a data breach reached $4.35 million.

The reputational damage of a breach adds to the initial financial blow. Bad press particularly around privacy deters customers from purchasing from the affected brand. 

Which provide the best security agains data breaches? in-house or outsourced loyalty programmes?

So, what makes loyalty programmes particularly vulnerable to data breaches? In short, it depends on the company’s loyalty programme technology.

Let's talk about the security trade-offs between in-house and outsourced loyalty programmes.  Building your own system gives you complete control - I get why that's appealing. But most businesses simply can't match the security infrastructure that specialised providers offer. I always tell potential clients to do their homework. Not all providers are created equal, and you need to thoroughly vet any vendor's security credentials and SLAs.

If you're considering the in-house route, again, what are your capabilities and resources? The key is finding a partner who can demonstrate robust security measures, while still giving you the visibility and control you need over your programme. After all, it's still your customer data we're protecting. At Propello, our loyalty platform integrates seamlessly with SEON, a specialist 3rd party, fraud protection tool.

For many brands, loyalty accounts are relatively new territory. Many in-house built programmes still operate with legacy security measures that simply can't keep pace with modern threats. Without adequate network security, hackers gain unfettered access to loyalty accounts and extract everything from customer data to transaction histories. Essentially orchestrating a full account takeover. 

Account Takeovers (ATOs)

In 2021 alone, over 24 million US households fell victim to loyalty-related ATOs. 

These insidious attacks are subtle. Rather than immediately draining points, fraudsters typically play the long game. They start with minimal changes to personal information, gradually expanding their control until they can modify authentication methods and lock out legitimate users. By the time a customer realises their loyalty rewards are at risk, the damage is often already done.

Spoofing

Spoofing is an old-school tactic for a reason. It continues to work. What’s worse, modern spoofers don't just create fake emails. They even build convincing front ends of reward programmes that perfectly mirror legitimate brands, complete with professional design and convincing user interfaces.

The 7.3% increase in email-based phishing attacks we saw in 2021 only tells part of the story. Today's spoofing operations target multiple vulnerabilities simultaneously, manipulating both technology and human psychology to bypass security measures. They're particularly effective against loyalty schemes because customers are naturally receptive to messages about their rewards.

Loyalty Points Hacking 

Points hacking has evolved from opportunistic theft into a systematic attack on reward point ecosystems. Nowaadays hackers target entire point storage infrastructures instead of just individual accounts. They aim to break into dormant accounts that collectively hold millions in terms of monetary value. 

What's particularly troubling is how these stolen points are monetised. A complete loyalty profile, including its login credentials and reward card numbers, can be sold for significant money on dark web marketplaces. Buyers then execute rapid-fire points redemption, maximizing their gains before detection systems can respond.

Redemption Fraud

Redemption fraud represents a unique challenge because it operates in the grey areas of legitimate programme usage. Whether it's employees with backend access or customers testing system boundaries, these fraudsters exploit normal points redemptions in ways that, quite frankly, can be difficult to detect.

In my experience, the most effective redemption fraud schemes often combine multiple techniques. Internal actors might manipulate loyalty accounts while simultaneously creating plausible customer service scenarios that justify their actions. Meanwhile, some customers systematically probe for gaps in redemption rules, attempting to claim benefits from expired promotions or through unauthorised channels.

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Industries Most Affected by Loyalty Fraud

No industry with a loyalty programme is immune to fraud. However, certain sectors present more attractive targets based on their reward structures and redemption flexibility. Here’s some patterns we've observed across industries.

Travel and Hospitality 

The travel sector continues to be one of the most targeted industries, with fraud costing an estimated $1 billion annually. We've noticed a pattern with how fraudsters approach these programmes. Rather than immediate point drainage, they play the long game. Compromised frequent flyer accounts are often left dormant for months while cybercriminals gradually test control limits and prepare for larger-scale theft.

What makes travel programmes particularly vulnerable is their high-value redemption options and transferability features. Our analysis shows that fraudsters specifically target accounts during peak booking seasons, when large-scale point redemptions appear more natural and are therefore harder to flag as suspicious activity.

Retail

In the retail sector, we're seeing an alarming trend that connects directly to the account takeover patterns I mentioned earlier. Once fraudsters gain control of loyalty accounts, they systematically purchase gift cards with stolen points. These untraceable gift cards are then resold through dark web marketplaces and hidden Telegram channels for 25-60% of their face value. 

This resale ecosystem has become so sophisticated that some fraudsters specialise solely in converting stolen loyalty points into gift cards, while others focus exclusively on the resale network. What makes this scheme particularly attractive to cybercriminals is the clean transaction trail it creates - making it harder to flag than direct point theft.

Financial Services

Loyalty programme fraud in the financial services sector mirrors many of the advanced techniques I outlined earlier in our discussion about redemption fraud. While banks typically maintain robust security for their core services, their loyalty programmes often operate with less stringent protection. Creating what I call a "side door" vulnerability.

Reports in the 2023 Fico Trends Report indicate a 53% increase in loyalty fraud attempts in this sector. 

Fraudsters operate in those grey areas between legitimate and fraudulent activity. They'll convert stolen points into legitimate purchases, transfer them across multiple accounts, and create plausible customer service scenarios to justify suspicious transactions - making the trail increasingly difficult to track.

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Warning Signs and Detection

Detecting fraud early is crucial for preventing it. Each type of fraud we discussed leaves its own distinctive fingerprint. There are clear warning signs that signal potential fraudulent activity across your loyalty programme.

That’s good news because these patterns often emerge well before any actual fraud takes place. Fraudsters, whether they're external hackers, opportunistic customers, or internal threats, typically test the waters first. They probe for vulnerabilities in your security measures and experiment with small-scale attacks before launching full scale operations.

Understanding these patterns is your first line of defense in protecting both your customer accounts and your brand's reputation.

Unusual Account Activity Patterns

Cross-reference account activity with customer lifecycle stages. New accounts showing behaviours typical of long-term customers (like high-volume transactions or multiple device usage) often indicate synthetic identity fraud. Similarly, established accounts suddenly deviating from years of consistent behaviour patterns warrant immediate investigation.

Suspicious Loyalty Points Movement

Focus particularly on the combination of these patterns. For example, unusual earning patterns combined with immediate redemptions often signals organised fraud rather than opportunistic abuse.

Authentication Failure Patterns

Authentication failures often precede larger fraud attempts. Quick response to these patterns can prevent more serious breaches.

Irregular Redemption Behaviours

Compare redemption patterns against the customer's historical behavior. Significant deviations from established patterns often indicate potential fraud.

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Who Suffers From Loyalty Fraud? 

From my experience leading a loyalty tech platform, I've seen how loyalty fraud creates a devastating ripple effect that impacts multiple stakeholders. Let me break down the real-world consequences I've witnessed:

The Impact of Loyalty Fraud: A Stakeholder Analysis

What's particularly concerning is how quickly the damage compounds. A single breach undos years of carefully built customer relationships. I've seen cases where brands lost not just the compromised accounts, but also their friends and family members who lost confidence in the programme's security.

This is why at Propello, we emphasise that fraud prevention involves preserving the entire ecosystem of trust between brands and their loyal customers.

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Example Cases of Loyalty Fraud

Marriott International Data Breach

In 2020, hackers breached the Marriott International’s property system. All hotels operating under the franchise use an application to help provide services and customer service to guests. 

At the end of February, Marriott International detected a large two employee login credentials were used to access an unusual amount of guest information. In fact, the estimated number of compromised accounts racked up to around 5.2 million guests! 

In addition to their contact details, their loyalty account information (including points balance and account number) were accessed. In reaction to this, Marriott International Data notified authorities, heightened monitoring and told customers about the breach. Luckily, passwords to loyalty accounts were not compromised. Similarly, Marriott Bonvoy, the hotel company’s loyalty programme, was not believed to have been broken into. 

The hotel company was fined £18.4M. 

North Face AOT & Points Hack

Hackers broke into 200,000 customer accounts in 2022. The North Face detected unusual activity in early August. They contained and eliminated the threat by the 19th August. Yet, a review of the incident found the attack actually started at the end of July.

The cyber criminals accessed personal details about customers. These included their full names, billing and shipping addresses, purchase history and information about their XPLR Pass Rewards. 

Luckily, The North Face doesn't store payment card details on user accounts. Therefore the hackers were unable to access monetary funds directly from customers’ bank accounts. Unfortunately The North Face had no choice but to wipe the tokens on compromised rewards accounts as the hackers had access to them. Users also had to reset passwords and re-enter payment card details linked to the accounts. 

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6 Loyalty Fraud Detection and Prevention Strategies 

Leading a loyalty tech platform has taught me that protecting reward programmes isn't about choosing between security and user experience. It’s a matter of prioritising both without detriment to either one. 

Through protecting millions in loyalty points and working with enterprise brands, we've refined six essential strategies that create robust security measures without friction. From multi-factor authentication to real-time fraud detection, these aren't just theoretical defenses - they're battle-tested solutions that scale with your programme.

1) Invest in a breach detection system

As we saw earlier, by the time a data breach is detected, attackers have typically been in the system for months. That's why I consider a Breach Detection System (BDS) non-negotiable for protecting loyalty accounts.

Think of BDS as your loyalty programme's immune system. It continuously monitors for suspicious activity across your network, flagging potential threats before they can compromise customer data. The power of modern BDS comes from real-time analysis. It can catch hackers mid-attack, forcing them to abandon your platform. 

Key warning signs your BDS should track:

• Unauthorised changes to website design or loyalty platform interfaces.
• Sudden spikes or drops in account activity.
• Multiple failed login attempts to backend systems.
• Unusual patterns in customer access attempts.
• Unexpected modifications to redemption rules.

From my experience, even brands with strong security teams remain vulnerable without automated breach detection. When you're handling sensitive customer data and valuable reward points, you need technology that never sleeps

2) Provide multiple security factors 

Google reports that multi-factor authentication blocks up to 99% of phishing attacks, making it a game-changer for protecting loyalty accounts from widespread compromise.

An effective MFA should layer security intelligently:

• One-time passwords via email, SMS, or authenticator apps.
• Biometric verification that mirrors banking-grade security.
• Geographical mismatch detection between payment cards and logins.
• Advanced CAPTCHA systems blocking automated attacks.

Inevitably some customers might question additional security steps. That should subside when they understand these measures protect their valuable reward points. Resistance on the whole will pale in comparison to appreciation. Over half of consumers think positively about businesses that implement strong security measures. 

3) Educate customers about social engineering

Bad actors aren't just attacking your systems. Worryingly, the stats I shared earlier show a growing problem of fraudsters directly targeting customers through social engineering. Cybercriminals impersonate legitimate communications to harvest login credentials and account information.

Take a page from the banking sector's playbook. Leading banks build customer trust through proactive education about security measures, and we've seen this approach work just as effectively in loyalty programmes. Counter to what some brands fear, security education doesn't dampen programme enthusiasm. If anything it demonstrates value by meeting expectations of modern consumers.

On page 5 of KPMG's "Consumer Loss Barometer" consumers were asked what actions their banking institutions should take to reduce security breaches. These included: ‘Frequent Communications and Updates’; ‘Direct line to institution’s security group (to answer questions); ‘Offer a course on how to secure mobile devices for banking’. Overall, these score 38%, 13%, and 10% respectively. 

With that in mind, here's what successful customer education could look like:

• Clear communication about what your team will never request (passwords, full account details).

• Guidelines for identifying suspicious communications targeting reward points (these first two bullets could be included in a course or welcome pack). 

• Dedicated  channels to security teams to easily report potential phishing attempts.

• Regular updates about emerging threats to loyalty accounts (which continues the education process).

An educated customer base is your first line of defence against fraudulent activity. Through proper training, they transform from potential vulnerabilities into active participants in protecting the programme's integrity.

4) Customise workflows to set up detector triggers

Smart workflow design plays an integral role in effective friendly fraud detection. These customised triggers act as an early warning system, helping identify and stop suspicious activity from bad actor customers, before it escalates into a full-blown crisis.

Let me share some real-world examples that have proven particularly effective:

• Birthday reward abuse detection, catching multiple redemption attempts or suspicious date changes.
• Point-to-purchase ratio monitoring that flags unusual earnings patterns.
• Multi-channel activity tracking to spot potential fraudulent transactions.
• Time-based triggers that identify abnormal redemption velocities.

What makes these workflows powerful is their ability to adapt to your specific loyalty programme. Each trigger can be fine-tuned based on your customer behaviour patterns, making it easier to distinguish between genuine activity and potential fraud.

While Experian's latest fraud report highlights how smart workflows combat APP and P2P fraud (page 16), we've found they're equally crucial in detecting friendly fraud. A growing concern with 59% of eCommerce merchants reporting increased attacks (see page 6 in the same report). 

Through proper layered workflows involving advanced data analytics and transaction monitoring, loyalty programmes can effectively identify and prevent opportunistic exploits while maintaining legitimate customer relationships.

5) Reduce access to back-end to minimum amount of people

From my experience working with enterprise clients, the most secure loyalty programmes operate through small, dedicated teams on both sides. At Propello, we assign focused customer success teams to work with just a select few client representatives - creating clear, traceable points of interaction that would quickly contain any potential security risks.

Key considerations for managing backend access:

• Designate primary points of loyalty programme maintenance to a select number of people in your enterprise. 
• Establish clear responsibility chains for system modifications.
• Document all access permissions and interaction protocols.
• Conduct regular access audits and security reviews.

Should you opt for a third party loyalty platform provider, just know that modern loyalty software eliminates the need for large teams managing backend operations. Therefore, the tight access circle makes internal fraud detection straightforward. When only a handful of people can modify reward points or account settings, unusual activity becomes immediately apparent.

6) Deploy Secure Customer Loyalty Software

A fully secure platform is the best way to help prevent and detect loyalty fraud. The Propello loyalty and reward platform integrates with leading fraud prevention service, SEON

SEON CCO Jimmy Fong commented on the increase in fraud attacks within the customer loyalty and reward space:

“Unfortunately, referral and bonus fraud are massively on the rise. We are proud to learn that our technology is in the right hands with Propello, who also shares our vision to help businesses go-to-market quicker with the right solutions.

Propello makes security maintenance of your programmes simple and stress free. In addition to the SEON fraud prevention solution, we adhere to the ISO 27001 Information Security Management framework. This includes regular penetration tests. We also operate on an IL4 hosting environment, which is the same type used by the Ministry of Defence.

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Monitoring System Implementation

While we've touched on various monitoring aspects, let me outline how these components work together to create a comprehensive defence against fraud. 

Fraud Monitoring Tools

Modern fraud detection requires a layered approach. From AI-powered analytics to behavioural monitoring, these tools work together to spot patterns that might slip past individual security measures. The key is real-time monitoring that adapts to emerging threats.

Account Security Protocols

Beyond just monitoring, you need clear protocols for responding to suspicious activity. This means putting specific processes in place for investigating alerts, validating suspicious activity, and taking action on compromised loyalty accounts.

Fraud Alerts Implementation

Effective alert systems balance sensitivity with accuracy. We've found success with tiered alert systems that escalate based on threat level - from automated warnings for minor anomalies to immediate action triggers for serious security risks.

Transaction Tracking Systems

As we now know, comprehensive tracking goes beyond monitoring individual transactions., into fully understanding patterns across your entire loyalty programme. That way you can quickly identify potential fraudulent activity. This could vary between point accumulation to redemption behaviours.

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Future of Loyalty Programme Security

The landscape of loyalty programme security is rapidly evolving, driven by technological advancements and changing fraud patterns. I've seen how artificial intelligence and enhanced collaboration are reshaping our approach to fraud prevention.

Artificial Intelligence & Advanced Analytics

The future of fraud detection lies in AI-powered solutions. Through our work with major brands, we're seeing how machine learning models identify both known and emerging fraud patterns in real-time. Most exciting is AI’s ability to analyse vast datasets. Able to spot suspicious patterns that legacy systems might miss and all without any hindrance to  seamless experiences for legitimate customers.

Cross-Industry Collaboration

Data sharing is becoming crucial in the fight against fraud. Modern fraudsters don't operate in silos, so it makes sense neither should our defence strategies.

Hence why 81% of industry leaders think cross-sector collaboration is essential..

Secure data consortiums and improved intelligence sharing identify fraud patterns across multiple programmes and stop attacks before they spread.

Biometric Authentication Evolution

Physical biometrics like fingerprints remain important but the future lies in multi-layered authentication. From the research we’ve conducted I think it’s safe to say we can expect a combination of behavioural biometrics, device intelligence, and advanced analytics.

Real-Time Monitoring and Response

The future of fraud detection is shifting from reactive to proactive. This transformation is backed by significant investment. A fairly recent worldwide study showed a huge increase in fraud prevention budgets in selected countries. 

Again, this is reflected in Experian's latest research that I linked to earlier. Look at page 6 in the report. There’s an overwhelming focus on real-time monitoring and AI. This investment in proactive monitoring reflects a fundamental shift in how organisations will approach loyalty programme security.

Building a Secure & Future-Proof Loyalty Programme

After exploring the complex landscape of loyalty programme fraud, one thing becomes abundantly clear: protecting your loyalty programme future-proofs your customer relationships.

Through our experience at Propello, we've seen how a comprehensive technology platform transforms vulnerable programmes into robust engagement engines. But choosing the right partner who understands both the technical and human elements of loyalty security is crucial. Whether you've already got a loyalty programme in place, are planning to build one yourself, or considering partnering with loyalty specialists, here's what you need to consider:

Implementation Checklist

• Assess your current security vulnerabilities
• Identify potential high-risk areas in your reward programme
• Plan your multi-layered security approach
• Choose the right technology partner

 Essential Resources

• Deploy real-time monitoring systems
• Implement multi-factor authentication
• Establish clear security protocols
• Train your team on fraud prevention

Ongoing Protection

• Continuous monitoring and adaptation
• Customer education programmes
• Proactive threat detection

FAQs

What exactly is loyalty programme fraud?

Loyalty programme fraud involves the deliberate exploitation of reward systems through various methods. This includes external hackers stealing points, customers abusing programme loopholes, and internal staff misusing their access privileges to manipulate reward systems for personal gain.

How can I tell if my loyalty programme is under attack?

Watch for unusual patterns like multiple failed login attempts, unexpected changes to account details, or suspicious points redemption activities. Key indicators include logins from unusual locations, sudden changes in redemption patterns, and multiple accounts linked to single devices.

What makes loyalty programmes vulnerable to fraud?

Many loyalty programmes rely on outdated security measures while containing valuable customer data and points. The combination of basic authentication methods, legacy systems, and high-value rewards makes them attractive targets for fraudsters.

How can businesses prevent internal fraud?

Implement strict access controls, limit backend access to essential personnel, maintain detailed audit trails, and use real-time monitoring systems. Regular security audits and clear accountability chains help prevent internal exploitation.

What role does AI play in fraud prevention?

AI systems analyse vast amounts of transaction data to detect suspicious patterns in real-time. Machine learning models can identify both known and emerging fraud patterns while maintaining seamless experiences for legitimate customers.

How effective is multi-factor authentication?

According to Google, MFA blocks up to 99% of phishing attacks. Implementing multiple security layers, including biometrics and device verification, significantly reduces the risk of unauthorized account access.

How should brands handle suspected fraud reports?

Dedicated reporting channels, immediate account freeze capabilities, and trained security teams ready to investigate alerts. Companies need clear escalation procedures, automated detection systems to verify claims, and secure communication methods to keep customers informed throughout the process.

Are certain industries more at risk than others?

Each sector has unique vulnerabilities that fraudsters specifically target. However, travel, retail, and financial services face the highest risks due to their high-value rewards and flexible redemption options.

How important is customer education in fraud prevention?

Customer education is crucial as social engineering attacks often target programme members directly. Regular updates about security threats and clear guidelines about official communication help prevent successful fraud attempts.

What security features should loyalty programmes have?

Essential features include multi-factor authentication, real-time monitoring systems, fraud detection algorithms, secure data encryption, and regular security audits. Advanced biometric verification adds an extra layer of protection.

Author Bio, Written By: 

Mark Camp | CEO & Founder at PropelloCloud.com | LinkedIn

Mark is the Founder and CEO of Propello Cloud, an innovative SaaS platform for loyalty and customer engagement. With over 20 years of marketing experience, he is passionate about helping brands boost retention and acquisition with scalable loyalty solutions.

Mark is an expert in loyalty and engagement strategy, having worked with major enterprise clients across industries to drive growth through rewards programmes. He leads Propello Cloud's mission to deliver versatile platforms that help organisations attract, engage and retain customers.