By Doriel Abrahams, Principal Technologist at Forter
Last year, Forter’s data showed that fraudsters had zoomed in on travel. The research indicated that travel was being attacked at about double the fraud rate compared to typical trends during the rest of the year. At the time, it was theorised that this was a reaction to the post-Covid travel boom, however, data from this year has shown travel fraud has continued to increase.
So, what makes travel so attractive for fraudsters?
Travel is Hot for the Fraudulent Fraternity
A Bankrate survey found that this year, more than a quarter (27%) of Americans want to travel so much that they’re willing to take on debt to fund it. That indicates that although spending might decrease in other areas, experiences are essential for many.
Fraudsters inevitably follow the money. If many people are increasingly focused on travel, fraudsters will target the travel industry as well. When on travel, entertainment, and dining out increases, fraudsters are likely to pay more attention to these booming sectors putting extra pressure on the travel industry.
At the same time, many consumers still feel financially unsettled, as reflected in their willingness to take on debt. That leads to an interest in good deals, which for fraudsters means further opportunities. Nothing is more tempting for a fraudster than tricking consumers into paying for an offer that’s “too good to miss” for goods bought with stolen payment methods.
The Stress of Last-Minute Travel
As with hospitality bookings, last-minute travel reservations are more likely to be fraudulent than bookings made for further out. In the case of travel transactions, last minute, meaning within 48 hours or less notice, is almost 3x more dangerous than reservations made at least one week into the future.
On the one hand, they are often less common in travel than in hospitality, which makes it easier for them to flag and investigate if there are suspicious signals.
On the other hand, last-minute travel reservations are still fairly common, and in many cases, a legitimate traveller making a last-minute booking does not have the time, patience or flexibility to jump through many extra hoops or take a call trying to verify their identity. This puts a real burden on fraud teams for both accuracy, to avoid annoying good travellers as much as possible, and sensitivity to make any verification as fast and easy as possible.
Personalised Protection
Verifying that the person behind a transaction in travel is legitimate is especially likely to be challenging for fraud teams. Signs that sometimes signify suspicious behaviour in other contexts are common for people who are travelling, such as:
- Unusual IP address
- Unusual shipping address
- Unusual product choices
- Sometimes, a different device
- Different device/cyber intelligence (location, time of day, languages installed etc.)
For this reason, fraud teams must focus on the whole picture presented by an identity. If this is a returning customer, does their behavioural profile match their past behaviour? If not, does it match the typical behaviour of people who belong to their buyer persona? Bringing in additional sources of data can be very valuable. Even if a customer is new to the business, it’s unlikely that they’re new to the internet. Being a part of the wider fraud-fighting community is a huge asset.
Context is also key. Understanding what legitimate behaviour looks like on a the site or app is essential.. Is this in line with what is expected from legitimate customers or fraudulent ones? The more protection can be personalised to distinguish legitimate customers from fraudulent attempts, the more that understanding can be used to streamline shopping for good customers and even offer promotions or benefits based on their behaviour, profile, or past preferences.
Fighting fraud in travel is a challenge, and it hasn’t eased as much this year as expected. But doing it right can not only protect a business from fraud but also help it level up the experience for good travellers.
