Financial grade security for loyalty programs

With many loyalty card providers holding vast amounts of data, often to a high monetary value, it’s important they adopt the same security as financial organizations. Our authentication solutions can verify that your customers are who they say they are.

Family checking loyalty program scheme - Loyalty Programs sector

The problem with loyalty programs

From saving up store reward points for the holiday food shop, to collecting frequent-flyer air miles for a getaway to paradise, it’s little wonder that loyalty programs are so popular. And for businesses, they’re a chance to reward and encourage consumer loyalty, while gathering an abundance of customer data. The catch is that loyalty accounts and transactions are rarely subject to the same level of identification security as other payments or transactions – meaning they become a prime target for fraudsters.

The challenges faced by loyalty providers

As loyalty fraud rises, there’s undoubtedly a job to be done in making schemes more secure. As with any other accounts that hold money, data, or value of some kind, businesses should be able to identify and verify that the person trying to access a loyalty account is who they say they are. At the same time, for loyalty programs to be as effective as possible, a seamless user experience is key.

Fraud Target

Loyalty programs are increasingly a target for fraud. Partly because accounts are valuable, in the sense that account holders often save up points, rewards, or air miles, and partly because they often lack security and are considered easy to hack. This also means that providers themselves are custodians of the huge amount of data they collect via their loyalty programs – the very data that makes them a target in the first place.

Account Takeover

Account takeover forms a large part of the threat, as well as the risk of further identity fraud, in which associated personal data and bank details can be compromised and used for nefarious means. The difficulty for loyalty providers is that the threat is coming from all angles. They’ve got to consider not just third party fraud, but first and second party fraud too – which makes the whole thing difficult to manage.

Consumer Expectations

While consumers want to reap the rewards of loyalty, it goes without saying they don’t want their personal data compromised – or have cybercriminals running off with the reward points they’ve painstakingly collected over time. There’s also room for improvement when it comes to user experience. Loyalty cards or apps should not only be made safer with tighter identification security, but that authentication process should also be quick and seamless.

How Callsign secures loyalty programs

The threats to loyalty program identification security take many forms. Meanwhile, the case for aligning loyalty programs to any other business asset, process, or transaction, in terms of both security and usability, is clear. If anything, it’s long overdue. Callsign supports this in a number of instances:

Reduce Fraud

It’s one of the most prominent risks faced by consumers and businesses alike.

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Improve User Experience

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Licensing Compliance

Location has a key role to play in verifying that someone is who they say they are.

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Securing Your Workforce

Employee-related data breaches are all too common.

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Improve Security

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Choice Control and Consent

When it comes to identification, businesses should be looking at the right degree of choice, control and consent.

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Multi-factor authentication - Loyalty Programs sector

How Callsign helps loyalty programs

On one hand, loyalty program users expect the security of their accounts, personal data, and transactions to be a given – and businesses are accountable, in a regulatory sense, for upholding that. On the other, they simply want to get on with reaping the rewards of loyalty. Meeting all these needs is exactly where Callsign technology comes into its own.

Our solution makes it possible to significantly improve the security of loyalty programs once and for all. By using thousands of data points in real time to determine identity, we can instantly verify that an account holder is who they say are. If our technology suspects anything abnormal within that, it dynamically increases authentication. Helping to reduce loyalty program fraud, without adding friction to the user experience.

Above all, there’s no reason why loyalty programs shouldn’t be subject to the same reliable authentication standards as any other kind of account. Adopting a solution like Callsign is a surefire way to achieve exactly that.

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