The International Air Transport Association (IATA) is partnering with e-commerce security platform Riskified to help airlines better detect fraud in online ticket sales.
IATA is integrating Riskified's Chargeback Guarantee tool into the IATA Financial Gateway, which airlines use for payment processing. The platform uses artificial intelligence to analyse ticket transactions, comparing them to billions of previous online transactions, to determine instantly whether airlines should approve or decline each purchase. If an approved purchase turns out to be fraudulent, Riskified reimburses the carrier, according to IATA.
This will prevent carriers from being overly conservative in review orders and enable them to gain revenue "by declining fewer consumers out of a fear of fraud, no matter where the customer is in the world," according to Riskified chief revenue officer Peter Elmgren.
A July 2020 White Paper by IATA reported that "airlines are in fact the vertical most affected by online fraud, accounting for 46% of fraudulent transactions".
From 2018 to 2019, fraud attacks on the airline sector increased by 61%, where fraudsters typically targeted upper-tier products — an average legitimate purchase is worth US$606, while the average fraudulent purchase is more than three times higher, at US$1,9306.
Source: Business Travel News