Summer Sun Shines Light on Fraudsters Targeting Travel Industry
May 30, 2019
Recent data published by AAA anticipated that 43 million people would kick off the summer with a Memorial Day vacation, adding that the majority of them (37 million) planned to take road trips.
Not surprisingly, fraudsters are capitalizing on American’s travel trends in a big way. According to arecent study from Forter, land travel (car rentals, train services) and accommodation (hotels) have witnessed a 19 percent increase in fraud attack rates over the past year.
The fraud index also noted a distinct difference in fraud attacks on major airlines versus low-cost carriers, with major airlines experiencing 37 percent more fraud attacks. Now that summer is unofficially underway, the travel industry will need to be cautious and take steps to “emphasize accuracy in antifraud going forward, avoiding risk-averse approaches that often result in false positives while also minimizing fraud,” according to the the 2019 6th annual Fraud Attack Index.
While increasingly popular with good customers, transactions and bookings where the payment is made online in advance were also particularly prone to attack. “As hotels, car rentals and train services aim to optimize for customer experience, they face challenges when it comes to fraud prevention. An ideal customer experience means removing some of the traditional barriers like requiring proof of identity. This provides fraudsters with an opportunity.”
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