Credit Card News

Advertising Disclosure
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.
Credit Card Applications » News » Other » Airlines Post Two-Year Drop in Credit Card Fraud

Airlines Post Two-Year Drop in Credit Card Fraud

By
Add to Favorites:
Airlines Post Two-Year Drop in Credit Card Fraud

Online fraud costs the airline industry $1.4 billion a year. Although it is still a huge number, airlines have been fighting back and making some headway. A survey conducted by CyberSource Corp., a unit of Visa, Inc., showed that online fraud for airlines dropped 31% between early 2009 and 2011.

How the Fraud Occurs

In a typical scam, the fraudster will entice an unsuspecting consumer to purchase a deeply-discounted ticket online. He will then use an illegally-obtained credit card number and other personal information to book a full-price ticket in that consumer’s name. The scam artist delivers the ticket to the customer and receives a cash payment in return for his “work.”

The fraud protection techniques that airlines are employing are helping to reduce the problem but more needs to be done.

How Airlines Fight the Fraud

One of the primary tools aiding the airlines in stopping the online fraud is the use of online fraud detection tools such as automated screening. In addition to screening, airlines are also rejecting transactions that are suspicious.

Experience, or how long the airlines have been selling tickets online, also seems to play a role in the airline’s ability to fight fraud. According to the CyberSource survey, those airlines that have been selling tickets online for less than three years have higher fraud loss rates than those that have been allowing online ticket booking for over three years. The less experienced airlines also have higher manual review rates and rejection rates than the more experienced airlines.

Airlines that have been offering online booking for over 10 years only have a 15% manual review rate on its online bookings. Airlines that have been allowing online booking for three years or less have a 53% manual review rate.

The CyberSource survey wasconducted between November 2010 and January 2011 and reflected the results of airline carriers with $62 billion in online sales, or around 40% of all online carrier revenue.

Add to Favorites:

Related News:

Finances and Marriage – Its an Issue

By Dar Dowling, Posted: February 22, 2017

Finances can play a very real role in divorce, but it can also have a profound effect on a couple’s financial health after divorce papers have been signed and put away, according to a new national study by Experian. Continue reading
Small and Medium Businesses Are Feeling Hopeful and Confident

By Dar Dowling, Posted: February 21, 2017

If you have felt a sense of hopefulness when visiting small and medium-sized businesses, you’re in sync with the trending vibe, according to the inaugural American Express Global SME Pulse. The study found that these businesses are feeling ... Continue reading
New Visa Cards From Cathay Pacific

By Dar Dowling, Posted: February 20, 2017

Travelers have new rewards earning credit cards to choose from with the rollout of Cathay Pacific Visa Signature card. Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Unlimited 1.5x rewards on every purchase, every day. For every $1 you spend, you earn 1.5x Miles.
For Excellent, Good Credit
Get a dollar-for-dollar match of all the cash back you’ve earned at the end of your first year, automatically.
For Excellent, Good Credit
Guaranteed $500 Unsecured Credit Limit
For Bad Credit