Chris Staab discusses loyalty fraud, account takeovers, and the importance of corporate social responsibility in loyalty programs.
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Hi there, I'm Amanda Cromhoe from Truth. Welcome to the Blind Laugherty
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Challenge.
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We interview world experts in loyalty blindly. We're hoping to create insight,
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spontaneity
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and a lot of fun through the challenge. The challenge is about promoting the
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Blind Laugherty
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Trust and my book called Blind Laugherty, a hundred and one loyalty concept
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radically simplified.
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All profits from the book go towards the trust. We hope you enjoy the Blind L
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augherty Challenge.
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For today's Blind Laugherty Challenge, I'm speaking to Chris Starb, who's the
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co-founder of
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AI Events. Before we get going, Chris has already confessed to me that he's
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terribly nervous
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about today because he's had his head in revenue management for the last three
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months. I think
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you said Chris. I have to be gentle on you apparently. Welcome Chris.
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Thank you for having me. I'm happy to support this great cause. I've been
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working in loyalty
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in the Airlats for 30 years and always trying to do charity activity. Glad to
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support this
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initiative. Amazing. Thank you. You're all the way in Panama City and I'm
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sitting down here in Cape
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Town. We're really pushing the Blind Laugherty Challenge around the world,
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which is even more
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exciting. You were tagged by Andy Choi and Andy and I had an amazing discussion
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around doing good
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for through loyalty programs, as you can imagine, would be part of Andy's
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portfolio. My first question
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to you, and I know you're no stranger to the airline industry, so chapter 76 of
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Blind Laugherty
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is about airlines and FFP. What has been your personal favorite loyalty
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experience on an airline
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or with an airline? Well, recently I went to, thanks to another loyalty
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executive, David Felbmann.
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He got me invited to the, I don't know if you know him, he chairs some loyalty
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event,
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well-known guy, Australian, great guy. And he got me invited to the opening of
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the museum in Panama.
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That was the largest collection of model airplanes in the world. So, COPA
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sponsored.
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And they had some of their elite flyers there and COPA is working to use its
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corporate sponsorships
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to take its top elites to similar events. So, I got to talk to them there and
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they've inspired me
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to work to be top elite of the airline so I can, you know, get football match
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tickets and similar
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through their sponsorships. I thought that was something not, not particularly
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related to airlines,
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but related to how they sponsor many activities and leveraging that for their
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top elites.
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Yeah, and what I love about that is, you know, it's, that's the buy invitation
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only and money
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can't buy experiences that we hear about, but you're actually seeing it in
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practice. So,
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well, you've got to get to stay at that elite status there, Chris.
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On the road, I think I'm going to molt it.
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There's one thing I know you and your colleagues are not, uh, not afraid of
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talking about and
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that's loyalty fraud. So, in chapters 85 and 86 of blind loyalty, I touch upon
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it, but very
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lightly, I wouldn't even confess to, to try and go deep into the subject. But
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what has been your,
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from what you've heard in the industry, what is the craziest loyalty fraud
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example you can share with us?
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Well, let me, let me level set first and talk just about the general problem.
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It's gone crazy. So, you know, I have a volunteer job with the loyalty security
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alliance and we,
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we were pretty busy with hotels in the past, but this year we got really busy
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with airlines.
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And basically, the story is that airlines have gotten really good at stopping
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credit card fraud.
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So that, so the fraudsters have, have turned to account takeovers. It's just
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easier for them. So,
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airlines are, airlines are really getting hit by account takeovers. And this
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isn't particularly
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crazy, but one of the, one of the reasons why it's getting attention in
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airlines is
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the executives themselves are the victims. So, the CEO, this SVP or their wife,
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their kids,
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their friends are victims. So, it's becoming personal and that's driving the
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attention. So,
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it's not just that it's happening so much. It's who it's, it's happening so
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much, it's happening
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to the right people to get attention drawn to the, to the issue. So, account
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takeovers,
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it will be on your radar because it's just gone crazy because it's just easier
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for
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fraudsters to do than credit card fraud. Yeah. Honestly, it's such an
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incredible subject for
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every loyalty professional, like I don't know anyone who doesn't want us, just
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everyone wants
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to talk about it because it's just so there, isn't it? It's like, it's really
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happening across
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all sorts of industries. We run a loyalty fraud group that I'm going to talk to
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Michael about
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in South Africa and it's just so difficult for everyone. Okay. So, chapter 60
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is around
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loyalty and doing good and sustainability and that was the bulk of my
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discussion with Andy.
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But do you really, in your opinion, do you think this is really happening?
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In bits and I'm about to, I know I get to tag someone, I'm going to tag someone
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in this space.
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So, stay tuned for that towards the end of our interview. But I do think, but
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one of the challenges
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that I've seen over the years is large companies like airlines, so particularly
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large airlines,
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like I believe your former British Airways or American Airlines or, or, you
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know, Air Canada,
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they tend to have their preferred charitable partners run through our corporate
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social
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responsibility. So, it makes other charities hard to break in when you're not
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that American Red
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Cross or some huge international or national charity, it makes it hard. So, it
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does happen,
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but it's difficult. And we are seeing some green shoots related with some green
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loyalty
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programs like Etihad has where I think it's a challenge because you get accused
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of greenwashing,
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but, you know, there are some things that can be done. Like, if you're not
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going to eat,
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why not give the passenger an option not to get, not get a meal, right? And
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give them the airline
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save some money and give them, you know, 500 points and airline save some money
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and everyone's happy
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all around. So, I think there's some opportunities there. Yeah, absolutely. And
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I guess that's part
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of what I'm trying to achieve through blind loyalty. And yeah, we're getting
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some successes and then
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others would like to do more in. So, well, thank you. You did not need to worry
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as a revenue management
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headspace for the time being. You've answered all my questions beautifully. So,
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thank you. Who would
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you like to tag? So, I would like to tag someone in the charitable loyalty
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space. It's Kevin Crow
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from Giveemout. And I'll let you know, you've got to listen to his story. It's
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just wonderful. So,
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it's someone doing good through loyalty and his personal story of why he's
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doing that good.
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It's just amazing. So, I'd like to tag Kevin Crow from Giveemout. Wow. I feel
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like I really need
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to hear his story. It sounds like a parallel story. So, amazing. Chris, thank
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you. You're an
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absolute superstar. I've loved chatting to you. Thank you. And I wish you the
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best for your
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charitable efforts.