PHOENIX — Programs designed to keep you coming back to a store or using a credit card are now targets for fraud.
Loyalty points come in many shapes and sizes. They can be cash back on every purchase or a discount on fuel.
“Checking my Fry's fuel points is not something that I would be doing on a regular basis.” David Beebe said.
However, after buying several large sets of gift cards from Fry's, Beebe noticed his fuel points were draining away.
“Someone had been plugging in my phone number on the pump and taking the points I purchased,” Beebe said.
Hundreds of points were used multiple times at a gas station nowhere near his home.
The crime is more common than you might think. On TikTok, there are videos of people showing off using other folks' phone numbers to steal fuel points.
"Fraudsters don’t stop, it adds up," Beebe said.
Professional criminals often are not focused on your fuel points. Instead, they want the loyalty points sitting in your credit card accounts.
“Unfortunately, wherever you have a store of value there are fraudsters trying to find a way to get their hands on it.” Patrick Sullivan with Akamai said. According to Sullivan, there are more than a billion attacks to try and take over accounts.
“There are these massive bot armies that all day long are trying credential combinations to try and successfully log in,” Sullivan said.
According to a report from Javelin Strategy and Research, account takeovers increased 90 percent in the last year with an estimated economic impact of 11 billion.
Once the account is taken over, your points can be liquidated.
“Each loyalty program is distinct, you have boundaries.“ Sullivan said.
Loyalty points can make an attractive target for fraudsters.
First, loyalty points are not as actively monitored as other credit card purchases.
Because of how they are used, loyalty points are more likely to be forgotten about and left for months until they are cashed in all at once.
Fraudsters can then redeem stolen points for gift cards or cash, which will not look out of the ordinary to companies.
“What more can you really do, it’s a grey area it’s not tangible money you can take and spend,” Beebe said.
To be clear, stealing loyalty points is illegal. If you are a victim, you can report it to the police and the company. However, the best route is to protect yourself.
“Number one thing you can do is use a unique password wherever you are on a website,” Sullivan said.
Fry's refunded Beebe's fuel points. To protect yourself, Fry's recommends changing it to a unique 10-digit number. You can also change your password whenever you want.
“Whether it’s a few dollars here and a few million dollars there I don’t think fraudsters care. I think those trying to game the system don’t care about the dollar amount. They want to get what they can get,” Beebe said.
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