Traveling Agencies Need to Prevent their Businesses from Fraudsters
Traveling agencies are experiencing more frauds than ever before. It is critical for the tour industry to save tech-savvy travelers.
Revolutionizing the Travel Industry against Online Business Scams
Digital fraud activities are increasing rapidly and traveling agencies are experiencing more pressure than ever before. Fraudsters are continuously expanding their criminal activities to get financial gains. During Covid-19, traveling activities became limited but 2021 is expected to be the year for adventurous people. More tourists and travelers are expected to travel this year. Digitization has revolutionized the traveling industry and has brought the convenience of websites to avail better accommodation options and reasonable prices.
With the advent of smartphones, mobile applications have brought ease not only to consumers but to travel agencies and airline businesses as well. Traveling agency scams are escalating quickly. According to Edgar, Dunn & company, travel agencies’ total fraud loss was reached 19% to $25 billion in 2020. It is essential for the entire tourism sector to provide safer digital avenues to make payments to avoid curb frauds.
Identity verification is Vital for Traveling Agencies
Travel agencies need to have a better understanding of what sort of scams commonly appear in the travel industry. This sector needs to recognize why fraudsters use some particular hot routes for data breaches. According to the Online Travel Fraud Benchmarking Report, Travel agencies bear a $10 Billion loss per year in online scams. The international air traveling industry earns more than $850 Billion per year and it has approximately 25% online business transactions. Digitization has fastened the business operations and these scammers act like viruses that feed off the whole system in a few seconds. Several cybersecurity firms are providing online user identity verification solutions and narrowing the place for fraudsters.
How to Redefine Protection Techniques for the Travel Industry?
According to Finextra, the tourism and travel industries contribute 10.2% to global GDP because hotel chains and airlines deal with a huge amount of customers per day. The travel industry needs to maintain effective yet efficient ways for check-in and check-outs without compromising security. Online biometric technology helps such businesses and is now an integral part of the person’s travel ID (identification).
The entire tourism sector and traveling agencies rely heavily on fast and efficient customer services. This technology provides better customer authentication through live facial verification and fingerprint scanning. Such instant user verification not only increases customer satisfaction but also greatly improves the business experience. The traveling industry needs to protect the businesses for multiple reasons which are;
● Hotel Reservation frauds
Fraudsters use stolen credit/debit cards and enjoy all hotel services. When a real customer comes to visit and face the fraud then he/she demands the chargeback. Such chargebacks can cost billions to the hotel industry. Not only that, but scammers also put their money in different sectors and hotel management must stay vigilant to avoid black money entering hotel financial records. That is why cybersecurity firms provide better security solutions that enable sender and recipient to share their documents in real-time.
● Airport Security
Millions of people move from one place to another on a daily basis and their numbers are increasing every passing day. In order to secure borders, it is essential to identify each person who is traveling and migrating to another place. Forged identities make it difficult for the airport securities to track frauds. Facial verification, passport checks during the time of the visa application can mitigate such hurdles.
● Airline Travelling frauds
The airline industry has been promoting flight reservations on credit cards to attract new customers to the business. Scammers book the flights on stolen credit cards and cancel them on the 11th hour to get the bonuses and resell the tickets. According to the Online Travelling Fraud Benchmark report, 15% of flight transactions from Las Vegas to Los Angeles were fraud attempts. Verifying each person during the time of visa application not only provides greater border services but also makes operations more transparent. Facial recognition technology provides better business practice and saves companies from huge financial losses.
● Identity Theft scams
Fraudsters use forged identities to enjoy all luxury services and do not pay a single penny to such agencies. Online travel services provide a greater number of deals, options, and many more. Mobile applications have transformed the user experience and have made everything available on the go. Due to smartphones, now customers want everything to be digitized and the travel industry is trying its best to provide a better customer base. Digital for check-in and check-outs can prevent human trafficking, fake online account opening, and illegal money transferring.
● Passport Scam
Most of the time, the airport uses manual security verifications and scammers easily fly abroad by using fake passports. Law enforcement agencies have sanctions and blacklists against Politically Exposed Persons (PEP). In order to comply with unauthorized traveling, airports need to implement a passport check scanner to verify the legality of the onboarding passengers. Online facial and fingerprint verification is hard to duplicate and provides robust checks that stop scammers from flying away with their illegitimate activities like money laundering.
How Does Online Identity Verification Act as a Fortress against Scammers?
Many people think that this technology will use their privacy in the name of security. Biometric verification helps businesses to know their customers and eliminate multiple frauds. Customers need to verify themselves in order to assure their genuine physical existence. With the advancement in automation, criminal activities have reduced significantly and the travel industry is enjoying exceptional financial gains.
The online facial verification and fingerprint scanning technology verify deep fakes, spoof attacks, and forged identities in no time. This real-time verification ensures that onboarding customers have legitimate reservations and narrows the chances of account takeover, fake travel ID through identity verification. The vigorous security solution is essential as it tarnishes the way of scammers and they cannot leave the country to fulfill their illegal activities.