Misuse of a rewards or loyalty program to obtain points, status, discounts, or redemptions contrary to program rules. It becomes loyalty fraud when it involves stolen accounts, fabricated activity, payment fraud, or organized resale.
Category: fraud prevention. Part of the Identity Technologist Glossary — more than 200 practitioner-grade definitions covering identity verification, KYC/AML, biometrics, fraud prevention, and compliance. See all terms at https://identitytechnologist.com/glossary.