It’s Cyber Security Awareness Month and travel fraud is on the rise. But it’s not just your clients who are at risk. Your business could also suffer significant financial losses and damage to your reputation. What can travel professionals do to protect their clients and themselves from falling prey to these scams?
A recent study conducted by ANZ revealed some alarming trends. Over the last 12 months, the bank successfully prevented over $120 million in fraudulent transactions, with more than $22 million linked directly to industries including travel. This paints a clear picture — fraud is hitting the travel sector.
Fraudsters are not only targeting consumers but also travel professionals, making it critical for the industry to bolster its defences. Whether you’re managing bookings, taking payments, or handling sensitive client information, being aware of the risks and implementing strong security practices can make all the difference.
Travel fraud: A growing threat
The rise of fraud in the travel sector has multiple drivers. The increasing use of online booking platforms and digital payment systems has made it easier for scammers to exploit weaknesses. According to the ANZ study, travel-related fraud has surged, with cybercriminals focusing on digital transactions for hotel bookings, flights, and travel packages. The convenience of online transactions, while beneficial for clients, opens up numerous opportunities for scammers.
And it’s not just the high-tech attacks you need to worry about. Phishing emails, fake booking sites, and fraudulent travel agencies are all on the rise. Clients can easily be misled into thinking they’re dealing with a legitimate business, only to find out that their details were stolen or their bookings never existed. The problem is complex, but it’s clear that the travel industry is a key target for scammers.
The top threats facing travel professionals
So, what kinds of fraud are travel professionals facing most often? Here are some of the top threats:
- Phishing and spoofing: Scammers impersonate legitimate companies or agencies, tricking customers into sharing personal details or making payments to fraudulent accounts.
- Payment fraud: Fake or stolen credit card details are used to make bookings. Once the fraud is discovered, legitimate travel agents and operators may be left footing the bill.
- Fake travel websites: These websites lure customers with seemingly legitimate deals but are designed solely to steal personal and financial information.
- Chargeback fraud: Clients may claim they didn’t receive services they paid for or that their card was used fraudulently, triggering a chargeback even when services were rendered.
Each of these fraud types poses a serious threat to travel businesses. But there’s good news: travel professionals can take proactive steps to safeguard their clients and operations.
How can travel professionals protect their clients and business?
The travel industry may be a lucrative target for scammers, but it doesn’t have to be defenceless. Here are several practical steps travel professionals can take to combat fraud:
- Use secure payment systems. One of the easiest ways to protect your business from fraud is to ensure you’re using secure, trusted payment gateways. Encourage your clients to make payments using credit cards or platforms with strong fraud protection. When you’re choosing a payment system for your own business, opt for one that includes encryption, fraud detection, and transaction monitoring. Not only does this reduce the risk of fraudulent transactions, but it also provides peace of mind for your clients.
- Implement Multi-Factor Authentication (MFA). A simple but highly effective way to secure accounts is by enabling multi-factor authentication. According to ANZ’s survey, only 22% of Australians have MFA enabled across all their accounts, even though 96% agree that cyber security is important. Travel professionals should lead by example and ensure MFA is activated across all business platforms and accounts. In addition, encourage clients to enable MFA on their accounts to add an extra layer of protection when making travel bookings.
- Educate your clients on phishing and fake websites. Phishing is one of the most common ways scammers target the travel sector. Travel professionals must stay vigilant and educate their clients about spotting phishing emails or fake websites. Make it a habit to remind clients that official communications will come from specific, verified email addresses, and that payments should only be made through secure, trusted channels. In an industry where trust is everything, keeping clients informed will build stronger relationships and reduce the risk of falling victim to scams.
- Verify client details and monitor for fraudulent activity. Travel professionals should be proactive when dealing with clients, especially new ones. Take the time to verify the authenticity of bookings, particularly if they come from an unfamiliar source. Look for signs of suspicious behaviour, such as requests for last-minute changes, unusual payment methods, or reluctance to provide personal details. Monitoring transactions closely and flagging anything that feels off can help prevent fraud before it happens.
- Stay up to date with cybersecurity trends. Fraudsters evolve quickly, so it’s important for travel professionals to stay informed about the latest cyber threats. Subscribe to industry news, attend webinars, and keep your team trained on the latest security practices. Cyber Security Awareness Month is a great opportunity to evaluate your current processes and introduce new strategies for staying one step ahead of the scammers.
Red flags to watch for
While protecting your business from fraud involves proactive measures, it’s also about recognising the warning signs before things go wrong. Here are a few red flags to watch for in day-to-day operations:
- Rushed bookings or transactions: Fraudsters often push for last-minute bookings or urgent payments to pressure travel professionals into missing important checks.
- Unusual payment methods: Be wary of clients offering to pay via less secure methods like wire transfers or unfamiliar third-party services.
- Mismatched information: If a customer’s personal details don’t align with their payment information or travel itinerary, take a closer look before proceeding with the booking.
Spotting these red flags early can prevent a lot of headaches down the line, and save both your business and clients from falling victim to fraud.
The role of industry collaboration
Fraud prevention is not something travel professionals can tackle alone. Collaboration across the industry is vital. By sharing information about new threats, collaborating with payment providers, and staying in close communication with clients, travel professionals can build a collective defence against scammers. Many organisations also provide regular updates on the latest fraud prevention techniques, so it’s worth becoming part of a community that prioritises security.
