
Seventy-two percent of loyalty program executives have suffered fraud-related problems, according to a study by a Loyalty Security Association. In particular, cases of deceitfully redeemed flyer miles are a primary concern. The same research revealed that 1 percent of redeemed air miles are phony. That figure accounts for a $3.1 billion loss worldwide. Even more worrying, expenses incurred by the top five airline-loyalty programs jumped 12 percent to $27.5 billion in 2020. Types of Loyalty Fraud There are two types of loyalty fraud: 1. Internal Fraud. This happens when staff(s) who are part of the loyalty program’s control crew plan […]
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