Employee Fraud in Loyalty Point Exploitation
Definition
Programs like those in Office National allow points redemption for high-value gift cards (e.g., Apple, flights), vulnerable to insider abuse without digital tracking.
Key Findings
- Financial Impact: 1-3% of program value (AUD 2,000 - 10,000/year for AUD 500k spend loyalty pool)
- Frequency: Ongoing, peaks at redemption cycles
- Root Cause: Manual or account-based point allocation without approval workflows
Why This Matters
Retail Gifts & Supplies firms in Australia 🇦🇺 lose 1-2% of loyalty value (AUD 2,000+ annually) to internal abuse. Automated audit trails prevent theft.
Affected Stakeholders
Store Staff, Customer Service
Deep Analysis (Premium)
Financial Impact
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Current Workarounds
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Methodology & Sources
Data collected via OSINT from regulatory filings, industry audits, and verified case studies.
Evidence Sources:
Related Business Risks
Churn from Delayed Loyalty Reward Fulfilment
ATO BAS Lodgement Penalties for Loyalty GST Errors
GST Unbilled Loyalty Rewards
Supply Chain Disruptions in Bulk Fulfillment
Idle Capacity from Delivery Bottlenecks
Churn from Delayed Bulk Deliveries
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