Gift Card, Loyalty and Rewards Fraud - AI, Machine Learning, Enterprise Fraud Prevention

Gift Card, Loyalty Points and Rewards Fraud

5x to 25x

the relative expense to acquire a new customer as compared to retain an existing customer

86%

of shoppers have joined loyalty programs and 71% percent found rewards to be important to their brand relationships

15%

of cards for sale in dark web exchanges are gift & rewards cards

Performance

Huge Growth and Emerging Risk

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Gift cards and other forms of stored value or virtual currency pose unique risks that span from duplication to money laundering. Rewards fraud can occur for items as small as a free beverage and as large as round-the-world first-class flight. Opportunists take advantage of program weaknesses and malicious actors compromise entire member databases, often with insider assistance.

As points and gift cards are often dispensed more freely than physical products, a thoughtful purchaser data request strategy combined with advanced analysis and machine-learned modeling can significantly control the otherwise significant risks.

E-Gifts as Digital Currency

Protect your digital gift cards as you would your cash. Because it is.

Fraudsters will go so far as to pose as airline rewards program representatives, emailing customers to asking them to update their loyalty program account information. The travel, gaming and virtual services industries are especially prone to points fraud and should be especially diligent in allowing users access to their accounts.

Controlled Growth

The Fraud.net platform is designed for fast-growth digital leaders. Integrate quickly, test aggressively, and reap the rewards of continuous improvement. We are not a vendor, but a partner and co-investor in your long-term success.

Working with a tight budget? Have a persistent problem that no one else has been able to solve? Ask us about our ‘Start up’ and ‘Performance’ programs.

If you are serious about controlling fraud, removing friction and exceeding your risk-adjusted revenue goals, then contact us today about the right solution for your organization.