News

Hackers Targeting Reward Apps Like Dunkin’ Donuts Perks Program and My McD’s

In the U.S., more than $100 billion reward points go unredeemed in a year.

Hackers Targeting Reward Apps

Everybody thinks twice before spending their money but if they are getting something in return for their purchase in the form of rewards, or loyalty points then customers tend to take purchase decision faster.

Reward apps and loyalty programs are a great way to save money but they are also a vulnerable target for hackers. The New York Times reported that the rewards app compromised the personal data of the users. Big brands like McDonald's, Dunkin' Donuts, Marriott and many more experienced hackers gaining access to information on their reward apps.

Rewards apps act as a great source to have free stuff for the users whereas these apps help brands in analyzing the consumer spending pattern and their consumption habits, in addition, it encourages customers to spend more money.

According to a loyalty-fraud prevention group, due to these loyalty and rewards programs approximately $1 billion is lost within a year to reward apps hacking. The Javelin Strategy & Research firm stated that non-card fraud crimes nearly reach to double within the period of 2017 to 2018.

reward apps hacking

In an interview with the New York Times, Kevin Lee, an expert in risk analysis at the data security firm Sift, said loyalty apps rewards are "almost a honey pot for hackers" and give "the path of least resistance" to private information.

In a data breach last year, hackers took advantage of the loyalty app of Dunkin Donuts’ DD Perks program, and exposed the data of the customers. McDonald’s customers also complained about the hacking of their accounts on McDonald’s loyalty app, My McD’s. 

Users complained that the hackers placed unauthorized orders, which also included some orders worth more than $1000.

However, acknowledging the “some isolated incidents," a McDonald’s representative said that they are “confident in the security of the app.”

As per the research from LoyaltyOne, there are approximately 3.8 billion rewards memberships in the U.S., exceeding the number of consumers by ten times.

Companies use these loyalty scheme programs to customize services and deals for users that are willing to provide their personal data such as date of birth, payment card numbers and location data.

Emily Collins, a Forrester Research analyst, argued that business houses are collecting too much data, which is usually “more than they can actually use.”

She further added,

Consumers generally provide more data and many of them don’t inspect their accounts carefully. There are over half of the rewards scheme memberships who are inactive in the U.S. and over $100 billion a year in rewards points remain unredeemed.

Now it is upon us to think whether the cashback and other deals that we are getting from money-making apps are worth more than the amount we are sacrificing.

Tanya <span>Editor In Chief</span>
Written By
Tanya Editor In Chief

She is a content marketer and has more than five years of experience in IoT, blockchain, Web, and mobile development. In all these years, she closely followed the app development, and now she writes about the existing and the upcoming mobile app technologies. Her essence is more like a ballet dancer.

News

Know All About A Leak Revealing Apple's New Design Concept

4 min read  

Apple has started the warm-up for WWDC 2018 and there is a sudden reveal on iOS 12 for the public. The leak suggests the production of some parts needed for 2018’s iPhone handset launch is underway. As per the official news, “Apple Inc. manufacturing partner Taiwan Semiconductor Manufact

News

Google Is Giving One More Android's Feature To Chrome OS

4 min read  

Google has already shortened the distance between its Chrome OS and Android platform by adding major Android features to the Chromebook. Now, the search giant further thickens the difference between the operating system with a new change. Most probably all of the Chromebooks will be getting another

News

Google Marketing Live 2019 Major Highlights: New Discovery Ads, Google Ads App And More Updates

4 min read  

We still have not gotten out of the Google I/O 2019 conference and another Google annual event is making the rounds all over the internet. Google Marketing Live event has always been a very important event for digital marketers across the world. Google Marketing Live 2019 finally pulled dow

News

Get Your New 'Lucky' Pokémon In The Pokémon GO

4 min read  

After the successful run of Pokémon game at the first go, the company passed on many of the features to its second streak of game, Pokémon GO. It is an augmented reality game developed by Niantic for iOS and Android devices, which has come up with a surprise for the game fans. The game

MAD Originals
MAD Originals

Cut to the chase content that’s credible, insightful & actionable.

Get the latest mashup of the App Industry Exclusively Inboxed

  • PRODUCTS
  • SERVICES
  • BOTH