Photo: NoDerog / iStock Unreleased / Getty Images
Loyalty programs, while offering enticing rewards, may pose a threat to your online security. Over three-quarters of Americans participate in at least one loyalty program, trading personal information like phone numbers or email addresses for discounts and special offers. However, this exchange can compromise your privacy, as data brokers build profiles and sell your information, potentially to scammers who use it for phishing emails.
According to a report by ByteBack Law, businesses running loyalty programs often collect customer data, triggering privacy compliance obligations. Federal laws, such as the Federal Trade Commission Act, require businesses to honor their privacy commitments. Non-compliance can lead to enforcement actions. Additionally, state laws add complexity, with varying requirements for data collection and sharing.
Loyalty programs are attractive targets for cybercriminals due to the vast amount of unmonitored data they hold. As F5 reports, criminals exploit these programs by using stolen credentials for credential stuffing attacks. These attacks can lead to the theft of loyalty points, which are then sold on the dark web or used for further fraudulent activities.
To protect your personal information, consider using a separate email address or phone number for loyalty accounts. This precaution can help safeguard your primary contact information if a breach occurs. Additionally, tools like Cloaked offer solutions to manage and control the information you share online, allowing you to enjoy loyalty program benefits without compromising your privacy.
