As Consumer Loyalty Programs Grow, Associated Fraud Prompts Need for
Greater Security
SAN FRANCISCO--(BUSINESS WIRE)--
CyberSource, a Visa Inc. (NYSE:V) company, announced the launch of its
Loyalty Fraud Management Solution, a new service that helps businesses
guard against fraudulent account creation and protect customers from
illegal use of their loyalty accounts, including theft of points, miles
and misuse of payment credentials.
According to RFi Group, an estimated $238 billion in loyalty program
rewards earned by consumers through airlines, hotels and other programs,
have never been redeemed. This proliferation of loyalty currency comes
as companies place increasing emphasis on rewarding their best customers
and driving customer engagement. As loyalty accounts increase in value,
a growing number of cyber criminals are attempting to transfer points
into fake accounts, and purchase loyalty points or miles with fraudulent
credit cards.
“This type of fraudulent activity not only impacts the profitability of
businesses, but also hurts customer trust and loyalty — the very things
these programs were designed to build,” said Andre Machicao, senior vice
president, CyberSource. “To protect themselves and their customers,
businesses are seeking ways to monitor fraud throughout the entire
loyalty program lifecycle. This is exactly what our new Loyalty Fraud
Management Solution is designed to do.”
The CyberSource Loyalty Fraud Management Solution helps program owners
protect against account takeover and all other activity, including fraud
that may occur with incremental points purchases, points transfers and
points redemption. The solution combines advanced analytical algorithms,
customizable rules and insights from the more than 68 billion
transactions Visa and CyberSource process annually to monitor for
suspicious activity. With the new CyberSource Loyalty Fraud Management
Solution, businesses can reduce fraud as their loyalty programs grow and
protect their relationships with their most valuable customers.
Available immediately, the CyberSource Loyalty Fraud Management Solution
is a new capability of CyberSource’s flagship Decision Manager fraud
management platform. Decision Manager features the world’s largest fraud
detection radar and real-time fusion modeling technology, which blends
sophisticated machine learning algorithms, along with a flexible rules
engine to help businesses swiftly and accurately respond to emerging
fraud trends.
For more information about the CyberSource Loyalty Fraud Management
Solution, please visit: http://www.cybersource.com/products/fraud_management/loyalty_fraud/
About CyberSource
CyberSource, a wholly-owned subsidiary of Visa Inc., is a payment
management company. Over 475,000 businesses worldwide use CyberSource
and Authorize.Net brand solutions to process online payments, streamline
fraud management, and simplify payment security. The company is
headquartered in Foster City, California and maintains offices
throughout the world, with regional headquarters in Singapore, Tokyo,
Miami/Sao Paulo and Reading, U.K. For more information, please visit www.cybersource.com.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160803005233/en/
Source: Visa Inc.