Fighting Fraud Among Loyalty and Gift Card Programs

Transcription

1 Fighting Fraud Among Loyalty and Gift Card Programs

2 Meet the Presenter Luc Garneau VP Strategic Consulting Services

3 AGENDA Fraud Can Happen at Any Time

4 AGENDA Fraud Can Happen at Any Time Examples of Fraud

5 AGENDA Fraud Can Happen at Any Time Examples of Fraud Red Flags

6 AGENDA Fraud Can Happen at Any Time Examples of Fraud Red Flags Industry Best Practices

7 AGENDA Fraud Can Happen at Any Time Examples of Fraud Red Flags Industry Best Practices Summary & Key Takeaways

8 Fraud Could Happen At Any Time

9 Could You Really Identify a Fraudster? 9

10 The Fraudster Profile is Not Who You Think

11 Fraud Is Not Limited to Debit & Credit Cards Gift Cards Loyalty Cards

12 Some Examples of Fraud

13 Example #1 What if an IT Employee Decides to Transfer Tons of Points to His Own Personal Loyalty Card?

14 Example #1 Loyalty Programs are Usually Very Rich in Customer Information Program Points are Currency Points Worth a lot of Money What if an IT Employee Decides to Transfer Tons of Points to His Own Personal Loyalty Card?

15 Example #2 What if Someone Adds Credit on Gift Cards without Really Paying for it?

16 Example #2 Gift Cards Remain a Great Payment Method The Money Contained on the Gift Card is Strictly Digital Hackers from the Comfort of Home What if Someone Adds Credit on Gift Cards without Really Paying for it?

17 Example #3 What if Someone can Easily Replicate a Loyalty Program s Currency?

18 Example #3 Stamps Photocopied using Laser Printers Employees Stealing Rolls of Stamps Stamps were Available on Auction Sites - i.e. ebay What if Someone can Easily Replicate a Loyalty Program s Currency?

19 Fraud Red Flags

20 What Signs of Fraud Can We Really Detect? Uncommon Updates to Customer Profiles Barrage of Unsuccessful Login Attempts to the Rewards Website

21 What Signs of Fraud Can We Really Detect? Same Loyalty Card Number Swiped Several Times within a Short Time Period An Unusual and Very Significant Amount of Points Being Redeemed in the Same Transaction

22 What Signs of Fraud Can We Really Detect? An Abnormal Percentage of Points Issued Now Being Redeemed

23 Industry Best Practices

24 6 Industry Best Practices Training and Awareness for Employees and Managers On average, nearly 9 in 10 business establishments utilize some measure of fraud prevention Putting forward employee and manager training and awareness are components of their fraud prevention strategy.

25 6 Industry Best Practices Training and Awareness for Employees and Managers On average, nearly 9 in 10 business establishments utilize some measure of fraud prevention Putting forward employee and manager training and awareness are components of their fraud prevention strategy. Provide Limited Access to Back Office System The less people who have access to the system, the easier it is to track who has potentially committed the fraud

26 Industry Best Practices Training and Awareness for Employees and Managers On average, nearly 9 in 10 business establishments utilize some measure of fraud prevention Employee and manager training and awareness are components of fraud prevention strategy Provide Limited Access to Back Office System The less people who have access to the system, the easier it is to track who has potentially committed the fraud Loyalty Program Alerts Setting Include limits based on unusual frequency Implement a maximum dollars value per day for redemption

27 Industry Best Practices Compare Gift Cards Activated with the Number Sold Run a report every week A large discrepancy could mean employees are turning off cash register after a gift card is activated

28 Industry Best Practices Compare Gift Cards Activated with the Number Sold Run a report every week A large discrepancy could mean employees are turning off cash register after a gift card is activated Place Gift Card Rack in a Location Easy for Clerks to Monitor

29 Industry Best Practices Compare Gift Cards Activated with the Number Sold Run a report every week A large discrepancy could mean employees are turning off cash register after a gift card is activated Place Gift Card Rack in a Location Easy for Clerks to Monitor Ensure all Gift Cards have a Scratch Off Strip Hiding Activation Number

30 Summary Key Takeways

31 Fraudsters do not always have a fraudster profile

32 Fraudsters do not always have a fraudster profile Like Debit and Credit cards Gift & Loyalty Cards are also at risk

33 Unsual transactions could lead to signs of fraud Fraudsters do not always have a fraudster profile Like Debit and Credit cards Gift & Loyalty Cards are also at risk

34 Unsual transactions could lead to signs of fraud Most systems can be configured to generate security alerts Fraudsters do not always have a fraudster profile Like Debit and Credit cards Gift & Loyalty Cards are also at risk

35 Fraud can cost you a lot of money, you need to act upon it Unsual transactions could lead to signs of fraud Most systems can be configured to generate security alerts Fraudsters do not always have a fraudster profile Like Debit and Credit cards Gift & Loyalty Cards are also at risk

36 Questions?

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39 THANK YOU!