Loyalty Blogs

Loyalty programs have evolved from simple point-based incentives to data-rich ecosystems that store a ton of customer information—personal details, purchase history, and even payment data. Cybercriminals have taken notice—and they’re exploiting the gaps. 

Over the last few years, loyalty fraud and data breaches have surged at an alarming rate. Attacks have become more sophisticated, targeting reward points, stealing customer credentials, and even using hacked accounts for financial fraud. A report by Forter highlighted that loyalty fraud has increased by 89%, costing businesses over $5 billion in losses each year. 

The real concern isn’t just financial—it’s trust. Customers engage with loyalty programs expecting value, not security risks. A single breach can mean lost business, reputational damage, and regulatory penalties. And yet, many loyalty platforms still rely on outdated security frameworks that weren’t built to handle today’s threats. 

The question isn’t whether loyalty programs need stronger security. It’s why so many providers are still operating on weak defenses. 

What Most Loyalty Providers Won’t Tell You About Security 

Most businesses assume that if their loyalty platform meets PCI DSS compliance, their data is safe. What they don’t realize is that many providers are still relying on PCI DSS v3.2.1, a security standard that is no longer enough to combat modern threats. 

Here’s why PCI DSS v3.2.1 is outdated: 

• Weak authentication protocols 

• Insufficient encryption measures 

• Limited real-time monitoring 

• Lack of proactive risk management  

Loyalty programs built on PCI DSS v3.2.1 are operating in a security landscape that no longer exists. The threats have changed, but many providers haven’t. That’s a risk a business must not afford.  

Novus Loyalty Leads the Industry with PCI DSS v4.0.1 Compliance 

For us, security isn’t an upgrade—it’s the starting point. That’s why we spearheaded being India’s first loyalty provider to be PCI DSS v4.0.1 compliant. We didn’t do it because we had to. We did it because anything less would be a risk we weren’t willing to take. 

Why PCI DSS v4.0.1 Is a Game Changer 

Threats have evolved, but most security protocols have not. That is why PCI DSS v4.0.1 is not an upgrade—it’s an overhaul. It addresses the vulnerabilities hackers have been taking advantage of, from deprecated encryption to authentication gaps. 

Here’s how it strengthens security: 

• Stronger authentication 

• Advanced encryption protocols 

• Real-time threat detection 

• Proactive risk management 

• Security-first mindset across operations 

What It Took for Us to Get There 

Achieving PCI DSS v4.0.1 compliance wasn’t a checkbox exercise for us. It was a rigorous, months-long effort that involved: 

• A full-scale security audit conducted by independent cybersecurity specialists. 

• Multiple rounds of penetration testing to eliminate potential vulnerabilities before attackers could exploit them. 

• Infrastructure overhauls to align with the latest security best practices. 

• Stronger encryption, authentication, and fraud prevention measures integrated across our entire loyalty platform. 

This wasn’t about meeting a standard. It was about setting one. 

Beyond Compliance: What This Means for Businesses & Customers 

Achieving PCI DSS v4.0.1 compliance isn’t just a technical milestone—it’s a direct benefit to businesses and their customers. 

For Businesses 

• Lower security breach risk: Strong defenses create fewer weak points, safeguarding customer information and brand integrity. 

• Regulatory compliance with no trade-off: Numerous global security standards converge with PCI DSS v4.0.1, simplifying compliance. 

• Higher customer confidence: A secure rewards program isn’t a feature—it’s a market differentiator. 

For Customers 

• Improved fraud protection: Enforced MFA and advanced security controls significantly lower the risk of account takeovers. 

• Robust data privacy: Financial and personal data are protected with high-grade encryption. 

• Frictionless, secure experiences: Security features are integrated seamlessly without causing friction. 

This isn’t just about compliance—it’s about making sure businesses never have to send an apology email for a data breach. It’s about customers trusting that their points, data, and transactions are safe every time they engage with a loyalty program. After all, security isn’t a feature. It’s a promise. 

Leading the Loyalty Industry into a More Secure Future 

The loyalty industry is at a turning point. Cyber threats aren’t slowing down, and businesses can no longer afford to rely on outdated security models.  

Novus Loyalty isn’t waiting for regulations to catch up. We’re setting the benchmark for what loyalty security should be. With PCI DSS v4.0.1 compliance, we’re leading the industry toward a future where security isn’t optional—it’s essential. 

Does your loyalty program stand up to today’s threats? If not, it is time to reassess security before it is too late.