Avoiding Payment Fraud Within the UK Travel Industry – A case study to help eliminate payment card fraud
During 2013 we published the first ever in-depth travel industry case study based on over 50,000 booking records from 52 of the leading travel companies within the United Kingdom.
In our second look at payment fraud in the travel industry, we have examined the data and comments of 73 companies within the industry. Companies that participated were either solely or partly operating in the UK and, as in the 2013 study, included scheduled airlines, charter airlines, traditional travel agents/tour operators, On-line Travel Agent`s (OTAs), accommodation providers, flight aggregators, hotel bed aggregators (bed banks) and hotels.
Figures from the payment card industry trade body Financial Fraud Action UK (FFA UK) have identified that during 2013 UK card fraud was up 16% on the previous year at £450 million whilst total card spending rose by 6.1% to £532 billion. Remote purchases, known as Cardholder-Not-Present (CNP), went up by 22% to £301 million. CNP fraud is a major factor in travel fraud and whilst the airlines have worked with payment card schemes and Europol to reduce this problem in their sector the general travel industry is a cause for concern as it has seen an increase in remote fraud which is predicted to continue to rise as much again during 2014.