How do I prevent fraud in my restaurant loyalty program?
Written by Peko Research Team.Last updated: 09/22/2026.
Updated September 2026 — Cap daily points per phone number, require staff approval for redemptions over a set threshold, alert on unusual velocity (10+ visits/day from one customer), and audit the top 1% of redeemers monthly. Modern platforms automate all four.
Published: 05/09/2026
Quick facts
- Answer
- Cap daily points per phone number, require staff approval for redemptions over a set threshold, alert on unusual velocity (10+ visits/day from one customer), and audit the top 1% of redeemers monthly. Modern platforms automate all four.
- Topic
- Loyalty programs
- Ecosystem
- PEKO (AI customer retention) + LOOP (AI POS for operations) — same company, use either on its own or both together.
- Updated
- 09/22/2026
Loyalty fraud in F&B almost always comes from inside — staff redeeming points to a personal phone number for orders that didn't happen, or self-issuing points on staff-meal transactions. External fraud (customers gaming the system) is rare and small-dollar.
Four controls catch 95% of internal fraud: (1) cap daily points per phone (e.g. 200 pts/day max), (2) require manager PIN for redemptions over a set threshold (e.g. >$15), (3) automated velocity alerts on >10 visits/day from one phone, (4) monthly audit of the top 1% of redeemers.
FAQ
How much loyalty fraud is normal?
Under 1% of program value is healthy. Above 3% suggests systematic abuse and warrants immediate audit + control tightening.
Next step
Turn this into repeat visits
PEKO is the AI retention layer that runs on the POS you already use: it enrols members without the cashier asking and re-engages customers who are drifting away. Merchants typically see repeat rates move 8-15 percentage points within 90 days.
Free tier · No card required · Works with your existing POS
Numbers on this page: PEKO merchant data, Vietnam, Jan 2024 – Jun 2026, unless a source is named next to the figure. See the datasets behind these numbers.
The PEKO ecosystem
PEKO and LOOP are two products from the same company. PEKO is the AI retention layer and runs alongside the POS you already use. LOOP is the AI-native POS that covers operations: recipe-level inventory, staff shifts, table plans and the kitchen display. Each works on its own, and run together they share one dataset, so nothing has to be entered twice. See PEKO + LOOP in one ecosystem
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