Did you know that March is Fraud Prevention Month?
Fraud is an increasing threat facing the tourism sector. Even during the pandemic, the airline industry alone saw over a 500% increase in cybercrime. From travel scams to stolen credentials, fraud schemes disrupt and exploit businesses, travelers and other industry stakeholders.
As we observe Fraud Prevention Month, it's crucial to shed light on the various ways fraud effects hospitality and tourism. Here are some key points to consider for you and your business:
Phishing and Data Breaches Fuel Fraud
One of the concerning fraud trends is the underground market focused on hospitality and travel.
With more than half of all credit card fraud taking place in the hospitality industry, cybercriminals purchase flights, hotels and tours with stolen payment details and loyalty points, only to resell the bookings at marked down prices.
Meanwhile, loyalty programs holding over $11 billion in value globally, also attract fraudsters. Criminals defraud users by redeeming reward points without authorization. Victims may only realize their missing points upon checking account balances, making detection difficult.
Strategies and Measures
- Educating staff about common fraud schemes and encouraging vigilance can help identify and prevent fraudulent activities.
- Utilizing encrypted payment gateways and implementing two-factor authentication safeguards customer data during financial transactions.
- Regularly updating software, employing firewalls, and training employees to recognize phishing attempts are essential steps in bolstering cybersecurity defenses.
- Protecting loyalty points from theft or misuse and implementing strong authentication measures are crucial for safeguarding customer rewards.
- Vetting third-party vendors for anti-fraud practices and regularly reviewing contracts ensure compliance and mitigate risks associated with external partnerships.
Evolution of the Fraud Pitch
Want to find out how frauds have evolved over time? Read more here by Canadian Anti Fraud Centre.
For more information, visit this website to learn common tools and techniques used by fraudsters.