IATA has developed a tool in
the BSPLink to allow travel
agents around the globe to
check if customer data has
been flagged as linked to past
airline ticket fraud. Although
the tool is not available yet,
its launch is ‘imminent’, says
Chris Goater, Iata’s manager
of corporate communications.
“We hope this can help travel
agents in their efforts to spot
fraudulent ticket purchases,
which will benefit the industry
at large.”
The South African trade has
welcomed Iata’s initiative as
credit card fraud is a major
problem in the industry. “We’d
welcome a fraud flagging tool.
This would really assist in
mitigating risk. Bring it on!”
says Monica Horn, product
manager of Harvey World
Travel Franchise Support Team.
Dinesh Naidoo, group
operations director of
Serendipity Worldwide Group,
says: “I’m not sure how it
will be managed. The biggest
problem is that accounts staff
use the BSPLink, not ticketing
staff. Can you imagine if every
booking had to be checked via
BSPLink? That would require
a few more staff and lots of
time,” he says. The best way
to prevent credit card fraud
is to get an imprint of the
credit cards and call the bank,
or use GDS Link (a global
provider of customer-centric
risk management and process
automation technology that
delivers customised solutions
designed to meet the needs of
companies).
The SA Banking Risk
Information Centre says
fraud-related banking losses
on SA-issued credit cards
increased by 23% from R366m
in 2013 to R454m in 2014.
Despite there being
numerous stringent anti-fraud
measures in place, Rachael
Penaluna, business manager
of Sure Maritime Travel,
says they are not foolproof
as criminal syndicates are
becoming more sophisticated.
“Our consultants are
constantly updated and
prepared for travel agency
fraud and we have two people
in our accounts department
who reconcile our own and our
corporate client credit cards,
but any help we can get from
the industry is very welcome.
Iata and the BSP should
take some responsibility for
fraudulent activity. They are the
centre point for clients, airlines
and payment after all.”
Joining forces
The South African industry
should combine efforts to
combat fraud, says Rachael.
“The Port Elizabeth Asata
committee is dedicated
to sharing information on
fraud, and we do so on a
regular basis with tips and
experiences, and if a fraudster
is identified, we send out a
description to all our Asata
agencies, so they are aware.”
Andrew Stark, md of Flight
Centre SA, agrees and says for
Flight Centre, communication
has been key. “Having 137
outlets, we certainly have
internal communications
systems that help protect
our people, suppliers and
customers.”
Asata members have access
to the association’s e-Watch
product that keeps a record
of fraudsters within the travel
industry.
Employers who follow due
process are able to list
employees who have been
found guilty of a dishonestyrelated
offence, allowing
determine the suitability of
a candidate for employment.
Asata has also run a series
of workshops by an anti-fraud
expert for members and
shares any incidents of fraud
reported by its members.
Otto De Vries, ceo of Asata,
says: “Asata encourages and,
to a certain extent, has been
very successful in speedily
sharing incidents of ID theft
and fraud perpetrated by
consumers to safeguard
member agencies against
further fraudulent practices.”
Days of action
Iata’s announcement comes
after a major global action –
‘Days of Action’ – organised at
the end of last year by Interpol
and Europol in co-operation
with the airline, travel and
credit card industries, to
combat fraud in the travel
industry. More than 60 airlines
and 45 countries were involved
in the activity, which took place
at over 80 airports across the
world. It targeted criminals
suspected of fraudulently
purchasing airline tickets
online using stolen or fake
credit card data. During the
operation, more than 281
suspicious transactions were
reported and 118 individuals
were arrested.
“Days of Action are
organised by the international
law enforcement bodies,
Europol, Interpol and Ameripol,
and usually happen once
or twice a year,” says Chris.
Usually, if an airline suspects
that a transaction is fraudulent
it puts a stop on issuing the
ticket, Chris says. “In the
case of the Days of Action,
the tickets are issued and the
details are reported to law
enforcement. Depending on
the situation, the passenger
may then be stopped and
queried at the airport. Often,
the initial police investigation
uncovers various other
issues, which may lead to the
passenger being detained, and
subsequently charged.”
Although Days of Action has
involved only airlines so far,
Iata tries to work closely with
travel agents, who, like airlines,
closely monitor their sales to
spot suspicious purchases,
Chris says. “If a travel agent
suspects there has been fraud
on a ticket sale, they should
inform the airline that has
issued the ticket as soon as
possible and decide if they
want to cancel the sale."
