Report: Online Fraud in Airline Industry Plunges 31% Since 2008

May 23, 2011

Despite losing nearly $1.5 billion to fraudsters in 2010, the airline industry is making strides controlling fraud in online transactions, according to CyberSource Corporation. The e-commerce anti-fraud software provider, acquired by Visa just over a year ago, said the results of the Airline Online Fraud Survey found fraud in the industry is 31 percent lower than it was in 2008. “Clearly, airlines have not only recognized the challenge but have made timely adjustments to it,” said Dr. Akif Khan, CyberSource’s director of products and services. The survey found that airline with less than three years experience selling online have higher fraud loss rates, manual review rates and higher reject rates that more experienced competitors. “Fraudsters will move to the weakest link in the chain,” said Christopher Staab, managing partner of Airline Information. “And that weak link is most likely going to be the airlines unfamiliar with how sophisticated fraud can be perpetrated with online ticketing sales.”

Download the report here .