LoyaltyBoard feature
Stop fake scans and duplicate claims before payout
AI fraud detection in LoyaltyBoard monitors redemption velocity, duplicate claims, device fingerprints and geographic anomalies, and OCR verification catches invoice tampering — so suspicious activity is stopped before rewards are paid.
- Duplicate claims and velocity abuse flagged
- Device fingerprint and location checks
- Digital KYC before redemption
What it checks
Four layers of protection
Checks run on every scan, claim and redemption.
Velocity
Unusual redemption or scan speed.
Duplicates
The same code or invoice claimed twice.
Devices
Many accounts on one device fingerprint.
Location
Scans from places that don't fit.
The basics
What is loyalty program fraud, and how does AI help?
Loyalty program fraud is any attempt to earn or redeem rewards without the real purchase or behaviour behind it. Common examples are repeat or fake QR scans, the same invoice claimed twice or by two partners, edited invoice amounts, and many accounts run by one person on one device.
Manual checks catch some of this, but not at the volume of a large channel program. AI looks for patterns that don't fit normal behaviour — redemption velocity, duplicate claims, device fingerprints shared by many accounts and scans from locations that don't make sense — and raises them for review.
On LoyaltyBoard, AI fraud detection, AI OCR verification and AI anomaly alerts are included from the Growth plan, alongside Digital KYC with PAN and Aadhaar eKYC. Enterprise adds the full AI suite. OCR verification catches invoice tampering before points are credited.
Plans
Fraud protection by plan
Protection grows with your program.
| Plan | What's included |
|---|---|
| Growth | AI fraud detection, AI OCR verification, AI anomaly alerts, Digital KYC |
| Enterprise | The full AI suite, including profile-based segmentation and churn prediction |
Best practices
How to protect a loyalty budget
Prevention is cheaper than recovery. Verify identity before the first redemption, use unique codes and OCR-checked invoices, and let automated checks run on every scan, claim and redemption.
Decide who reviews alerts and how fast. An alert that sits unreviewed for weeks protects nothing, and a review process that blocks honest partners damages trust. Agree response times and escalation upfront.
Look for patterns, not just single events. A single duplicate scan may be a mistake; many from one device or location is a signal. Review flagged activity by region, partner and product every month.
- Digital KYC before the first redemption
- Unique codes and OCR-verified invoices
- Automated checks on every scan, claim and redemption
- A named reviewer and response time for alerts
- Monthly review of flagged activity
Balancing control
Stopping fraud without slowing genuine members
The goal of fraud controls is to stop bad payouts without making honest members wait. Checks that run automatically on every scan, claim and redemption do most of the work; people only need to look at what the AI flags.
Digital KYC at enrolment removes a large share of risk up front, because every account is tied to a verified person before they can redeem. After that, anomaly alerts point your team to the small number of cases that need a decision.
Review flagged cases regularly and feed the outcome back into your rules. If a pattern keeps turning out to be genuine — for example a large retailer that legitimately scans many codes — adjust thresholds for that segment so the same members are not flagged again.
Knoxy · AI Chief of Staff
Knoxy watches fraud across IMAST 360
Knoxy, the AI Chief of Staff, detects fraud and anomalies across loyalty, rewards and orders and tells the right person.
Meet Knoxy- Flags suspicious activity for review before payout
- Alerts managers to unusual patterns
- Covers payouts in Reward Max too
Results
Programs protected on LoyaltyBoard
FAQs
Loyalty fraud detection FAQs
What is loyalty program fraud?
Loyalty program fraud is any attempt to earn or redeem rewards without the real purchase or behaviour behind it — such as fake or repeat QR scans, duplicate or edited invoices, or many accounts run by one person.
How does AI detect loyalty fraud?
It looks for patterns that don't fit normal behaviour: redemption velocity, duplicate claims, device fingerprints shared by many accounts and geographic anomalies.
Does KYC help prevent fraud?
Yes. Digital KYC with PAN and Aadhaar eKYC ties each account to a verified person before they can redeem.
Which plan includes AI fraud detection?
Growth includes AI fraud detection, AI OCR verification and AI anomaly alerts. Enterprise adds the full AI suite.
What happens when something is flagged?
Your team gets an anomaly alert so it can review the activity before approving the payout.
Does fraud detection slow down honest members?
No. Checks run automatically on each scan, claim and redemption, so clean activity goes through as normal and only unusual activity is raised for review.
Can fraud checks use our order data?
Purchase data from Distribution+ flows into LoyaltyBoard automatically, so your team can compare claims with real orders. Other DMS and ERP systems connect through REST APIs on the Enterprise plan.