Author: Philipp Pointner, Chief of Digital Identity at Jumio
Spending on travel is expected to reach an estimated $8.6 trillion this year, and with it comes a huge potential for fraud. Criminals have realised that travellers provide a gold mine of value, both in the ease of stealing their identities and the high rewards for stealing points from loyalty programs.
With 68% of consumers reporting that they know or suspect that they’ve been a victim of online fraud or identity theft, or that they know someone who has been affected having experienced fraud, trust is a critical currency for travellers sharing their data and details with travel providers, especially when the tools of fraudsters are getting more advanced by the day. Biometric identity verification must become the status quo to combat these ever-advancing threats.
Travel and cybercrime
Before travellers have even stepped foot in an airport, fraudsters can log-in to travel accounts to buy airline tickets with stolen credit cards and sell them to third parties, or they can take over a user’s online account and either buy a ticket with their air miles or transfer the miles to the highest bidder on the dark web. Travel accounts are a prime target for scammers as they hold very sensitive information, such as passports, driver’s licences, dates of birth, and travel dates.
As the digital landscape expands, AI is making travel scams more sophisticated and difficult to detect. Last year, holidaymakers lost more than £12 million to travel fraud, and victims lost an average of £1,851 each. This type of fraud is accelerating through the proliferation of AI, where bad actors flock to online services with high traffic, including vacation booking websites, impersonating a reputable platform or organisation to trick the victim into believing they are in contact with the site’s official representative through an AI chatbot.
The CISO of Booking.com recently stated the site had seen an increase of up to 900% more phishing scams over the past 18 months. These types of attacks often try to convince people to hand over their card details by sending them fake — but convincing — booking links to hotel accommodations. As a result, travellers are more willing than ever to spend more time on thorough identity checks – even if it means enhanced security across multiple touchpoints throughout their journeys.
Using AI to fight travel fraud
Fraud is a crime that benefits from compartmentalisation, at each stage of the journey. From booking flights or accommodations, the security and identity verification processes can differ — multiple accounts, different passwords, and emails — any one of these online checkpoints can be an entry for fraudsters.
To add to this, travellers are expecting fast, seamless experiences without compromising on security — and with the travel industry set to increase its investment in biometrics by 14% in 2024 alone, it’s clear the industry must respond resolutely to fraud concerns.
Whilst AI helps lower the barrier for novice cybercriminals to carry out effective access and information-gathering techniques, such as creating realistic-looking travel booking websites and emails in different languages, travel companies can leverage AI-powered identity verification solutions to strengthen security. These solutions streamline the login process for travellers while also employing advanced measures like facial recognition and liveness detection to confirm user authenticity. This reduces the risk of fraudulent accounts and protects traveller data.
Looking forward
As the digital landscape expands, there will be increased opportunities and generative AI tools for fraudsters to exploit vulnerabilities in travellers’ digital identities. However, companies that have invested significantly in AI-powered fraud controls are well-positioned to combat these advanced techniques used by scammers. With the increased advancements and adoption of AI-enhanced identity verification strategies, alongside the use of biometrics, travel will become a safer and more enjoyable experience for users, ensuring a secure
