CyberSource, the e-commerce antifraud technology company owned by Visa, yesterday unveiled a product designed specifically to combat loyalty fraud. As loyalty programs proliferate and points are increasingly transferrable, they have become a more lucrative target for fraudsters. The company said its Loyalty Fraud Management Solution protects merchants and consumers from cyber criminals trying to take over loyalty accounts, transfer points into fake accounts or purchase points or miles with stolen credit card information.
“This type of fraudulent activity not only impacts the profitability of businesses, but also hurts customer trust and loyalty—the very things these programs are designed to build,” said Andre Machicao, senior vice president at CyberSource. “To protect themselves and their customers, businesses are seeking ways to monitor fraud throughout the entire loyalty program lifecycle.”