Some companies excel at fraud prevention resulting in the costs incurred via chargebacks remaining unchanged or even reducing. However, preventing fraud in the first instance, with the increased need for dedicated fraud prevention systems and trained staff to manage them, is making the overall cost of fraud and fraud prevention an increasing concern.
With a massive shift in the last ten years to the booking of travel arrangements online it’s not surprising that over the last year 90% of reported travel fraud occurred online and therefore many companies have taken steps to strengthen their systems and processes to minimise the threat of fraud. However, this does not mean that the call centre is a fraud free zone, almost every company that operates a call centre or has agents working from home reported to us that they are regularly presented with fraudsters attempting to making bookings. Of the companies surveyed 86% stated that fraud prevention is a daily task and 47% stated that they have a dedicated team or individual whose sole daily task is fraud prevention.
In terms of the technology being used to prevent fraud 97% of companies who took part in the surveys we carried out have systems in place to manage bookings, with 55% having dedicated fraud prevention system. The most common tools relied upon were CV2 and AVS checks, with 50% of companies making use of 3d Secure.
On a year-on-year basis the threat of fraud was seen by 93% of companies as either an increasing threat or a constant threat, with only 7% of companies stating they believe the threat to be reducing. Only 14% of companies believed that the overall cost of fraud and fraud prevention was decreasing, with 43% stating that overall costs were increasing.
Our survey shows that fraud prevention is now receiving a higher priority in the daily work of companies operating within the travel industry.