## Protect Your Most ## Loyal Customers You’ve built your loyalty programs to reward your most valuable customers. Without the proper precautions in place to secure these programs, they are easy targets for fraud and abuse. ! ## Loyalty Programs, Fast-Growing Targets for Fraud Airlines, hospitality providers, retailers, and on-demand restaurant services have long embraced the value of loyalty programs. Today, there are more than 3.8 billion program memberships in the US alone – an average of 10 to 14 per consumer. While the value of these programs have increased, fraud prevention in this area has not kept pace. **72 percent of loyalty programs have reported** **issues with fraud**. With an abundance of redemption options, points are almost as liquid as cash and legitimate customer accounts are vulnerable to exploitation. ## Common Attack Vectors ## ACCOUNT TAKEOVER (ATO) Fraudsters hack into existing accounts and steal user data, funds, or benefits. ## NEW ACCOUNT FRAUD Fraudsters create multiple fake loyalty accounts, occasionally using stolen identities, then use them to accumulate, store, sell, and redeem stolen points. ## POLICY ABUSE Consumers overshare coupons or promotional codes violating merchant policies to receive benefits or rewards. ## LOYALTY BY THE NUMBERS ## $160B Estimated value of loyalty points in the US alone ## $100B Estimated value of rewards that go unclaimed ## $1B Estimated value of rewards fraudulently redeemed each year ## 89% Rise in loyalty program fraud from 2018-2019 ## 22% Customers that shop exclusively with brands where they are loyalty members ## 11 Forter has helped us reduce loyalty program fraud by more than 60 percent while enabling us to build stronger relationships with our customers. **Doug Ferreira** Director of Financial Operations ## Impact on Your Business Loyalty programs are more valuable than ever. The time to protect your business is now. ## TARNISHED BRAND REPUTATION 69% of loyalty program executives report that loyalty program fraud has a negative impact on brand reputation. Customers lose faith in how well their data is protected, resulting in lost lifetime value. Markets impose a cost as well. The average impact of a data breach is a 5% drop in share price and 7% loss of customer base. ## STIFLED BUSINESS GROWTH Companies that experience fraud are reluctant to offer new services or launch new loyalty programs. ## LOST REVENUE Between costly manual reviews, time-consuming fraud investigations, and unprotected loyalty programs – your business is losing revenue via multiple streams at once. ## CURRENT SYSTEMS CANNOT CATCH THE FRAUD Nearly 50% of merchants indicated that low organizational priorities and a lack of adequate resources prevent them from stopping loyalty fraud. ## Forter’s Loyalty Program Protection Solution Forter’s integrated fraud prevention platform offers a full suite of solutions to secure every touch point across the entire customer journey. ## Payment Protection Protects loyalty rewards redemptions along with payments (e.g. credit cards linked to the account) from fraud by accurately determining the trustworthiness of each transaction and the customer. ## Account Protection Identifies attempts to create fake accounts, account takeovers to steal points, or exploit saved customer data (i.e. credit cards). ## Policy Abuse Protection Prevents financial losses due to exploitation of coupons and promotions, discounts, or referral bonuses – assessing trust at every point of interaction. Forter’s **Loyalty Program Protection** secures your loyalty point programs and all account-related activities. ## Key Benefits Protect your entire loyalty account portfolio against even the most sophisticated fraud attacks and abuses. From sign up, to account access, to transfer and redemption of loyalty points, ensure your most valued customers and loyalty programs are always protected. ## INCREASE TOP AND BOTTOM LINE Slash your loyalty program fraud costs and operational overhead with a fully automated fraud prevention platform. Increase sales by minimizing false rejections. ## GROW WITHOUT RISK Deliver new experiences and programs tailored to your business strategies without worrying about loyalty fraud and abuse. ## PROACTIVELY PREVENT FRAUD Catch loyalty fraud and abuse before it occurs. Instantly and accurately approve only your legitimate users through an integrated fraud prevention platform. ## How It Works Forter’s integrated fraud prevention platform is tailored for your enterprise and provides real-time decisions across the entire customer journey with unmatched accuracy. Forter’s Loyalty Program Protection Solution integrates into your website, protecting the entire user flow. Approve/decline decisions are provided at selected touch points in the customer journey. All online sessions are visualized in the Decision Dashboard. Your team can provide inputs such as indicating that they would do something differently for an individual transaction to the Forter platform through the Dashboard feedback mechanism. ## Core Capabilities ## REAL TIME DECISIONING ACROSS THE ENTIRE CUSTOMER JOURNEY Fully protect your loyalty accounts from payment and redemption fraud, ATO attacks, new account fraud, and a variety of policy abuses. 100% automated decisioning at critical stages of the customer journey, not just at checkout, means your customers’ accounts are always secure. Protected touch points include: Sign up/Login, Change to sensitive personal information, Resetting a password and Payment page. ## ADAPTIVE AUTHENTICATION Minimize friction and promote good user experience by ensuring step-up security challenges only trigger when absolutely necessary based on high-risk account activities during the session. ## PREDICTIVE FRAUD RESEARCH AND MODELING Use actionable decisions now. Each decision is the result of a highly complex fraud assessment, weighting thousands of data points, contextual factors, cyber intelligence, and behavioral analytics. Forter’s decisions are 100% automated, actionable (Approve or Decline), and delivered instantly via API. ## DECISION DASHBOARD Get an in-depth view of your loyalty program and business ecosystem while being able to track KPIs at each point of the customer journey, such as approvals, declines, and suggested multi-factor authentication (MFA) challenges. ## TAILORED TO YOUR BUSINESS Your fraud prevention solution is tailored to your business model, risk appetite, service portfolio, the markets you operate in, and more. Your fraud prevention model adapts to your unique business KPIs and fraud prevention requirements automatically – whether through peak periods, new service offerings, or business expansion. ## GLOBAL MERCHANT NETWORK Accurately distinguish fraudulent activities from legitimate customer behaviors through a Global Merchant Network that has seen online activity of 620+ million users. By tracing emerging fraud trends across Forter client data your business is armed with a proactive solution that prevents attacks before they hit your business.