Report: Airlines Hit Hard by Online Fraud
Sindya Bhanoo writes on The Industry Standard:
The airline industry experiences significant online fraud, according to findings released by CyberSource Corporation, a company that offers a hosted fraud management solution for online retailers.More here.
According to the survey, airlines worldwide lost more than $1.4 billion to fraudsters in 2008. The figure amounts to about 1.3% of worldwide airline revenue.
Online fraud can occur in several ways, Bruce Frymire, a spokesperson for CyberSource told The Industry Standard. Generally, fraudsters use stolen credit card information to buy a ticket for themselves, or act as a travel agent, and buy a ticket for someone else. By the time the true card owner reports the theft, the flight has usually been taken and the airlines loses 100% of the revenue, Frymire said.