Hosted by Engage People Inc. on June 18th in Markham, Ontario
TORONTO & GLASGOW – June 6, 2018 – The recent breach of points at PC Optimum1 shows how vulnerable Canadian consumers’ loyalty points are. According to a 2017 study from Bond Brand Loyalty & Visa2, the average Canadian participates in 12.2 loyalty programs. The same study showed $16 billion worth of points left unredeemed by program members in Canada – a big target for “fraudsters.”
Christopher Staab, Co-founder of the Loyalty Fraud Prevention Association, says “If consumers value loyalty program and credit card points, so do fraudsters. Combine this with Billions in oustanding points, which consumers don’t protect as they would a bank account, and you have a recipe for the growing loyalty fraud epidemic in Canada. The result is breaches in recent years at AirMiles, WestJet, and most recently PC Optimum.”
Victims of loyalty fraud aren’t just the account holders missing points. Stolen points are also used to fund illicit activities. Staab goes on to say “Criminals often use stolen points to book travel for the trafficking of people, drugs, or arms, or they cash them in for gift cards or merchandise, which can then be sold to finance criminal activities.”
However, there are ways for companies to combat loyalty program fraud. This will be the main point of discussion during the 2nd Loyalty Fraud Prevention Symposium at Engage People Inc. in Markham, Ontario on June 18th. “As we clearly see an increase of loyalty points being stolen throughout the industry, it is more important than ever to work with the LFPA and share best practices to stop this disturbing trend,” says Nick Boccone, Engage’s VP of Infrastructure and Security. The session in Toronto encourages loyalty programs to work together to support the fight against fraud and to make sure that our customers — not the fraudsters — get full value from their points.
Registration for the 2nd Loyalty Fraud Prevention Symposium is complimentary for executives from Loyalty Program operators and financial instititions, as well as for representatives from other stakeholders in the Loyalty Industry. More details and registration at: www.LoyaltyFraudAssociation.org
About The Loyalty Fraud Prevention Association
The Loyalty Fraud Prevention Association was founded in 2016 to support the loyalty industry in its fight to reduce and eliminate fraud. Members consist of airlines, hotels, IT providers, financial services companies and others who operate loyalty programs from around the world. For more information, visit www.LoyaltyFraudAssociation.org or find us on Linkedin.
About Engage People Inc.
Engage has been a leading service provider organization to the global loyalty, recognition and incentive communities for over 25 years.
We are in the business of engaging employees, sales people, distributors and end customers. It is about more than just employee or sales performance or customer loyalty. The need exists, now more than ever, to engage your participants in a more meaningful and personally relevant way. All of our products and services are designed to deliver a more meaningful, relevant and personalized experience for the participant while delivering a consistent user experience on a global basis.
Michael Smith, Co-Founder
+1 305 542 9901
1 CBC, March 22, 2018: http://www.cbc.ca/news/business/pc-optimum-account-hack-points-rewards-1.4586135
2 2017 Bond Brand Loyalty & Visa Study: http://info.bondbrandloyalty.com/2017-loyalty-report