Empirical Analysis of Security Threats and Issues in Loyalty cards of Saudi market

Abstract A loyalty program (LP) is a common marketing strategy business owners use to increase profit and improve marketing experiences. In particular, services for point exchange or redemption are now offered globally because of businesses' efforts to build consumer loyalty and increase business profitability. Since both customers and attackers are drawn to these services, identifying their security threats can enhance the prevention of attacks as loyalty cards are easy to produce, and customers use them frequently with less attention, unfortunately. Therefore, this study analyzes the security and privacy vulnerabilities of using such a method on both sides: customers and merchants. That is, the study empirically investigates several real local loyalty programs. The results revealed some critical threats and vulnerabilities in the current loyalty programs. To overcome these threats and help business owners to improve their practices, a set of appropriate practical recommendations are proposed.