Loyalty fraud is one of the fastest growing frauds yet preventing it is often not as high up the priority list as preventing fraudsters using stolen card details to purchase an airline ticket.
Additionally, given that there is no new revenue or new customer acquisition via loyalty redemptions, the solutions to loyalty fraud need to be economical enough to make sure the benefits of implementation outweigh the cost of implementation.
HooYu recently attended the Loyalty Fraud Prevention Association conference in London. One of the big insights provided from the event was shared by David Andreadakis, the Chief Strategy Officer of Kobie Marketing; he revealed how Loyalty IDs are now selling for substantially more than social security number on the dark web. This shows exactly how valuable this information is to fraudsters and gives an understanding as to the scale of the problem faced by the industry.
HooYu was also lucky enough to get a chance to pitch to the Loyalty Fraud Prevention’s Lions’ Den panel at the conference taking away the award for “Best Presentation”.
Our pitch to the panel of industry lions talked through two solutions that HooYu offers to deter, detect and investigate fraud:
HooYu Investigate is a unique data visualisation service that displays search subjects at the centre of a graph and uncovers links to addresses, people and businesses. This makes loyalty fraud investigations faster and more efficient than previously possible. By using comprehensive built-in data sources and data visualisation technology, investigators are able to quickly understand how a subject is connected to another entity, such as a person, address or business.
Investigators can quickly see if there is a connection between people involved in illicit points transfers, uncover internal loss by discovering connections between individuals that would have normally remained hidden and even uncover complicated organised fraud gangs.
The example graph below showed the connections between a fraudulent airmiles redemption and the travel agent that redeemed transferred the points from clients’ accounts.
As the above graph shows, it is possible to investigate the subject of a suspicious points redemption very quickly. In this case, we are able to trace it back to the travel agency which has been transferring to the points from clients accounts to a third party for redemption.
HooYu Identify is a global identity confirmation service that works by combining digital footprint analysis, ID document verification, facial biometrics, and traditional database checks. At the point of redemption, merchants can check that points owners are who they say they are, all whilst maintaining a good user experience and helping to keep members’ loyalty rewards safe from fraudsters.
To find out more visit hooyubusiness.com or email firstname.lastname@example.org