Airlines lost $1.4 Billion to Online Fraud...HomeATM Can Help!

April 29, 2009 - 3:19pm | author: Petrony | Fraud | News

HomeATM's PCI 2.0 certified payment solution is available to airlines via Universal Air Travel Plan's payment platform.  I humbly suggest they take a closer look.  What's that old line?  Oh, I know: $1.4 Billion Saved is $1.4 Billion Earned! 

Are chargebacks the problem?  Maybe.  Is the fact that credit card companies withhold millions of dollars in usable revenue the problem?  Maybe.  I could use logic to go on and on, but I'd rather just say that we would solve the aforementioned problems immediately, in fact yesterday. 

You can't change the  past, but you CAN change the present.  What's the future?  Some say the present creates the future...I say the future should include "card presence."  Airlines have an choice.  What's the alternative?  We've talked in the past...and at the time...you passed.  Don't let the "passed" get in the way!   We can make this profitable.  Speaking of prophets, I know that the future is laced with more losses from online fraud...or more gains from card "present" TRUE PIN Debit from HomeATM. 

We hadn't yet spread our  PCI 2.0 wings when we last talked...now it's a whole new ballgame and together we can make this fly!   Come Fly with HoMEATM :)

Airlines lost $1.4 Billion as a result of online fraud

The survey commissioned by Mountain View, Calif.-based CyberSource Corp. and Airline Information LLC, producer of conferences and publications about commercial aviation, showed that in 2008 airlines lost more than $1.4 billion to online fraudsters, which makes about 1.3% of their Web-generated revenues.

One of the most popular frauds related to the online airline purchase was determined to be when a fraudster buys a ticket in the name of another person using the information from a stolen card, and then sells the ticket with a discount to another person.

Moreover, the survey showed that airline fraud often involves the cardholder not traveling, international, single-passenger and one-way travel deals.

The average revenue loss rate on airline Web sites made 1.3%. Carriers with the least experience in selling tickets online had higher fraud rates, as well as, carriers catering more to low-fare leisure travelers, rather than to full-fare and business travelers. Moreover, it was revealed that 30% of online bookings required additional manual review and verification. On average carriers used 5.8 fraud-detection tools.

Another data found as a result of the survey was that airlines reject 2.8% of their online bookings on average.

Results are based on online surveys of airline executives with fraud-control responsibilities and follow-up phone interviews conducted between Dec. 1 and Jan. 16 that resulted in 99 qualified responses. Carriers participating in the survey ranged from large to small companies all around the world. Participating carriers had combined online sales of $40 billion last year, about 25% of the industry’s online total.