Survey finds USD1.4bn lost by airlines in online fraud
CyberSource Corporation released (18-May-2011) survey findings estimating that airlines reported a loss of about USD1.4 billion to online payment fraud in 2010. According to the survey, changes made by airlines in the past two years include higher use of fraud detection tools in automated screening, along with rejecting more bookings due to suspicion of payment fraud.
- Airlines with fewer than three years of online selling experience have higher fraud loss rates, manual review rates and higher reject rates than their more experienced competitors;
- Only 3% of airlines surveyed used public record searches to validate bookings;
- 90% of airlines surveyed say their manual review staff levels will remain the same in 2011, despite IATA forecasting passenger revenue will increase by 7.3% in 2011. Automation is expected to make up the difference. [more]
CyberSource: "The good news is that in terms of fraud loss rates, 2010 results showed a 31% improvement over 2008. Clearly, airlines have not only recognised the challenge but have made timely adjustments to it," Dr Akif Khan, Director, Products and Service. Source: CyberSource, 18-May-2011