How to future proof your e-commerce strategy and prevent fraud

Airlines typically lose 1.5% of their online booking revenue to fraud (see article). That amounts to roughly US$1.5billion to the industry – or around $3 million each airline. No wonder then that airlines are trying to plug the leak by whatever means necessary. Here’s a few of the main questions airlines need to consider – I’ve come across these through dealing with fraud prevention companies like Ypsilon and Cybersource – key sponsors of the World Low Cost Airlines Congress I run: 

•    What technological solutions are needed to protect data?

•    How to regulate the payment information from 3rd party sales?

•    Who bears the risk in the event of a fraud?

•    How can you develop strong fraud prevention strategies along with 3rd party distributors to minimise losses?

Of course, this is just a starting point. Airlines will need to work out if they need tailored solutions, or off the shelf; how they can dovetail it with their internet distribution strategy and they’ll have to weigh up the costs involved in purchasing – and implementing- fraud prevention technology. If you’d like to find out more, there’s loads of info on cybersource’s website: www.cybersource.com Deloitte published an AIrline Fraud Survey back in 2010. If you want to hear it from the airline bosses and the techie men themselves, they’ll all be at the World Low Cost Airlines Congress this September.