To generate revenue and foster customer loyalty, many businesses, including retailers, airlines and credit card companies, create loyalty and reward programs. Such programs can help companies attract and retain customers, but they may also be subject to fraud and abuse. ATO risk Loyalty programs are particularly vulnerable to account takeovers (ATOs). In these schemes, a criminal assumes control of a customer’s loyalty or rewards account and monetizes it. The thief redeems points for goods and services for personal use or sells them on the black market. These days, the information usually ends up on the dark web. ATOs often are successful because many loyalty programs lack the robust fraud controls and dedicated teams of investigators to prevent and investigate them. Often, companies don’t understand the extent of fraud...
25
Jun 2021
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