Loyalty fraud reshapes risk for travel and hotels
Travel and hospitality companies are facing mounting financial damage from loyalty fraud, according to a new analysis from Fingerprint. The firm calculates that platforms in the sector now lose about $11 million a year on average to fraudulent activity, with abuse of loyalty programs emerging as a central driver of the problem.
The report estimates that loyalty rewards fraud worldwide accounts for between $1 billion and $3 billion in losses annually. As brands connect identity, loyalty balances and payment methods into unified systems, attackers are finding it easier to access and exploit stored value. More than half of loyalty fraud incidents begin with account takeover, which enables criminals to empty point balances or alter account details to support additional scams.
Session-level trust as a fraud response
Fingerprint highlights a 30% year-over-year rise in hospitality chargebacks and describes them as delayed signals of earlier fraud. To counter this, the company promotes session-level trust, using continuous device and risk assessment throughout each customer interaction to stop suspicious behavior before it results in losses.
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Photos Source: AI
