Synthetic Customer Identities Targeting Loyalty Programs 6
The Threat AI fabricates customers with complete digital histories (emails, receipts, browsing data) to exploit signup bonuses or loyalty rewards.
Why It Works Loyalty systems prioritize frictionless onboarding and often lack strong identity validation. Business Impact Loyalty program drain, corrupted analytics, and fraud investigation backlogs. What You Can Do Introduce behavioral risk scoring (that doesn’t violate any privacy standards) that flags new accounts with unusual velocity or reward-seeking patterns. Require extra verification for high-value redemptions (e.g., reward-to-cash conversions). Add device fingerprinting to detect bots generating multiple “new customers.”
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Threat-Level Meter
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