How do I prevent fraud in my restaurant loyalty program?

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.