From Nieman Marcus to Macy’s, StockX and Poshmark, retail data breaches have repeatedly made headlines for exposing consumers’ credit and debit card information. But while consumers may be watching their credit card and bank account balances for suspicious activities, another currency is increasingly under attack: loyalty program incentives.
As retailers lure customers through loyalty programs, their rewards may be easier targets for cybercriminals, experts told Retail Dive. Per the Forter Fraud Attack Index report, loyalty fraud has increased by 89% in only one year. Failing to protect such incentives is not only a financial headache for customers, retailers and financial services, but it can also drive consumers to more secure competitors, experts said.