How Security Breaches Effect Loyalty Programs

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Jesse Sharp
6 years ago
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1 How Security Breaches Effect Loyalty Programs

Enrolled over 6 million survey members Conduct over 500 surveys each week Send out over 8

2 RESEARCH NOW OVERVIEW To be the global leader in permission based digital data collection and reporting to power insight Operate in over 40 countries from all regions and demographics Enrolled over 6 million survey members Conduct over 500 surveys each week Send out over 8 million s per week Manage 4 terabytes of member data with over 10 terabytes of indexes 2014 Research Now 2

3 20% of all customers are considered Loyalty Customers 80% of business revenues comes from Loyalty Customers 63% of companies consider customer acquisition a high goal 70% of loyalty program members spend more 65% of loyalty customers want access to some promotion or coupon Why Loyalty Programs Help companies track VIP customers Increase customer visits by 12-44% Help turn casual customers into loyalty customers From MarketingProfs

4 KrebsonSecurity Many companies give customers the ability to earn loyalty or award points and miles that can be used to book travel, buy goods and services online, or redeemed for cash. Unfortunately, the online accounts used to manage these reward programs tend to be less secured by both consumers and the companies that operate them, and increasingly cyber thieves are swooping in to take advantage. They got into the account and of course the first thing they did was change my primary and secondary accounts, so that neither me nor my travel agent were getting notifications about new travel bookings, said Brothers, co-founder of Verafin, a Canadian software security firm that focuses on anti-money laundering and fraud detection. es-cash-out-rewards-points-accounts/

5 Lean Grow Loyalty Points are funny Retain money Dynamic program benefits and rules Infrequent visits to websites Most participants accumulate but do not redeem

6 Credit Card Reward Major Cards (AMEX) Store Cards (JCP) Gas Cards Reward Cards Restaurant.com Ticketmaster Products Travel Sites Travel Airlines Hotels Car Rental Travel Sites Retail Department Store Grocery Online (Amazon) Utilities (phone) Entertainment (movie) Password Phone Number Gaming Devices(Sony) Games ( Online Games Retail (gamestop) Online Payments (paypal) Social (Facebook) Career (LinkedIn) Interest (Pintrest) Market Research Surveys Behavior Mobile Special Interest Political Entertainment (netflict)

8 Yahoo 360 million LinkedIn 6.5 million 123.com 822 million JP Morgan 83 million Sony 24.5 million Ubisoft All accounts Google Gmail 5 million Target 70 million AOL - unknown In all, a total of 6.5 million hashed password believed to belong to LinkedIn members was posted on a Russian hacker forum earlier this week. The crooks posted the data in an effort to get help in cracking the passwords. Contact information, including name, address, phone number and address, as well as internal JPMorgan Chase information about the users, was compromised However, users often use the same s and passwords for Ubisoft as they do for other places on the Internet. The company suggests that everyone immediately change their passwords on any website that even has a similar password to the Ubisoft account (e.g., P@ssword and p@ssword).

9 Def Con annual hackers conference Aug 6-9, 2015 Spot the Fed game Blackhat training focus on hacking Aug before Defcon Metasploit developer framework for penetration testing Social Engineering Toolkit (SET) framework that mimics human keystrokes and website usage

10 Logon to account Navigate to account information Change address Navigate to rewards page Redeem electronic voucher

11 Block IP addresses Limit number of accounts accesses from a single IP address Require security question to change account information Require members to change password Delay voucher fulfillment when requesting a reward redemption Verify Cookies

12 People Groups of people (social networks) Companies Organizations Web sites Internet infrastructure Domains DNS names Net blocks IP addresses Phrases Affiliations Documents and files

13 Rick Nietubicz

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