5 key frauds in the travel and tourism industry
Over the past few months, online travel bookings have seen a huge upsurge. This massive transaction across digital travel and tourism platforms has also increased the risk of customers being duped by travel-related frauds, hampering their experience. A leading global fraud detection and prevention company, mFilterIt, shared their study of top frauds and how travelers can avoid falling prey to these online fraudulent activities.
Chargeback frauds and stolen credit cards
A fraud attack begins with obtaining consumers' credit card numbers and identifying information. Airline's earnings can be decimated as a result of bonus/loyalty abuse and bookings made with stolen credit card information can result in chargebacks. Keep monitoring credit card payments, eliminating paper trails of the credit card numbers, and report lost or stolen cards immediately to prevent this type of fraud.
Account Takeovers (ATOs)
This kind of fraud occurs when a scammer acquires access to a person's or travel agent's account information through data breaches or phishing and then poses as a legitimate client/travel agent to make unlawful transactions. Using 3-D Secure online pin, simple two-factor authentication help prevent ATOs. When authorized employees log into a travel agency's booking platform, they receive a verification request on their phone.
Fake travel websites and app cloning
Many travelers have been defrauded by websites selling counterfeit airline tickets, hotel rooms, false vacation packages, and vehicle rentals. Popular apps get cloned and placed in third-party play stores. The malware takes over the device that downloads it. To avoid this, book directly through the hotel's official website. If the legitimacy of the website bothers you, call the company to double-check.
Cyber breach
Attempted breaches can target any travel organization processing significant client data. It can harm the reputation of the company by exposing it to legal action. Bot assaults on travel websites are becoming more advanced with the goal of attaining access to sensitive client information. Travelers must stay updated on payment card industry data, and security standards and should dispose of digital data with care.
Bait and switch airline deals
One of the most common scams among offshore internet travel services operates partly by using pop-up ads that claim to save you a large sum on a trip. When travelers visit the website, they find lower costs than other online travel firms. However, they forget to disclose the vast range of fees. Always ask yourself if the offer looks too good to be true.
