What is a common misconception about loyalty programs and PII?

Loyalty programs are designed to retain customers by offering rewards, but a common misconception is that they are always beneficial for data protection. While these programs can provide perks, they often involve the collection and storage of personally identifiable information (PII). This data is sometimes utilized for targeted marketing or other purposes, increasing the risk of exposure in case of a data breach. Customers may believe that their information is safe simply because they are participating in a loyalty program; however, these programs can actually open up avenues for identity theft if the data is not handled securely. Understanding the balance between benefits and risks is crucial for consumers to protect their personal data while still enjoying the advantages of loyalty programs.