The term “loyalty fraud” describes a form of account takeover. In this special form, the fraudster profits from bonus points or credit that is stored in your customer’s account and uses this immediately to redeem it for his fraudulent transaction. This type of fraud is most commonly used in Frequent Traveller or hotel programs, because it is usually very likely that a customer has quite a lot of credit stored in their account. If a fraudster commits loyalty fraud, you are responsible for reimbursing your affected customer for their stolen points, miles or credits. Learn how to protect your business from loyalty fraud: https://riskident.com/en/whats-fraud/

Loyalty Fraud
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