10th November 2022
Established travel organizations need to address loyalty fraud head-on if they want to protect their most valuable customers and their bottom line.
The latest Loyalty Security Alliance’s (LSA) Global Loyalty Fraud Survey has indicated that awareness of loyalty fraud is on the rise. The survey featured 50 loyalty programs across the globe.
“There is more awareness (about such type of fraud) due to data breaches. But there is a rarely a dedicated team for the same, it is a work in progress,” said Kevin Lee, Sift’s VP of Trust & Safety during a webinar. The call for being proactive is getting stronger in terms of understanding the causes of #cyberattacks (tend to be driven by malware, phishing etc.), complex account takeover techniques and also counting on the expertise of technical security professionals. Types of fraud can be grouped as – fraud committed by internal actors (internal fraud by such as site staff, program administrators etc.), external fraud (Fraud in the form of account takeovers, identity theft, social engineering and botnet attacks) and gaming fraud or friendly fraud.
Other than understanding fraud, other areas to consider:
- CX vs. Security – Simply investing in security mechanisms without consideration for overall loyalty member satisfaction may have negative side effects as well.
- Evaluating the real cost of loyalty fraud – both tangible and intangible one.
- Real-time decision-making – how to count on an ensemble of statistical and Machine Learning natural language processing models?
It seems loyalty managers still have trouble getting enough attention and involvement from senior management and decision-makers to adequately address these fraud issues.
By Ritesh Gupta, Ai Events
