What Data Loyalty Programs Usually Collect
Most loyalty programs collect basic identifiers like your name, email, phone number, and date of birth. They also capture behavioral data such as purchase history, store visits, device identifiers, and sometimes location. When you link payment methods or use in-app wallets, some programs retain partial card data or transaction tokens. Together, these signals create a detailed profile that can be used for personalization and targeted marketing. The breadth of data varies by brand, but many programs know enough to infer your habits and preferences.
Together, these signals create a detailed profile that can be used for personalization and targeted marketing.
Where the Risk May Actually Come From
The biggest risks are account takeover through reused passwords, phishing, and breaches at the brand or its vendors. Because points have monetary value, criminal marketplaces actively trade compromised loyalty accounts. Even without a headline breach, third-party adtech and analytics integrations can expand who sees your data. Programs with weak authentication and broad data sharing increase the chance of exposure. Risk is not uniform: large brands may invest more in security, but any program can be compromised.
The biggest risks are account takeover through reused passwords, phishing, and breaches at the brand or its vendors.
Signals of a Safer Program
Stronger programs normally support multi-factor authentication, device recognition, and step-up verification for redemptions or profile changes. They minimize data collected, encrypt data at rest and in transit, and separate rewards from payment credentials with tokenization. Good programs run anomaly detection to flag unusual logins, rapid point transfers, or high-value redemptions. Transparent policies, easy opt-outs, and the ability to delete your account are additional signs of maturity. If a program lacks MFA or clearly explains little about security, consider limiting what you share.
Stronger programs normally support multi-factor authentication, device recognition, and step-up verification for redemptions or profile changes.
Practical Ways You Can Protect Yourself
Use a unique, long password and enable multi-factor authentication wherever it’s offered. Avoid filling optional profile fields, decline unnecessary data permissions, and unlink payment cards you don’t need. Watch for phishing by verifying sender domains and navigating directly to the app or site rather than tapping email links. Set alerts and check your point balances periodically; act fast if you see redemptions you didn’t make. Know your rights: you can often access, delete, or opt out of selling/sharing under laws like CCPA or GDPR.
Use a unique, long password and enable multi-factor authentication wherever it’s offered.