Northstar

www.travelweekly-asia.com | 7 DATABANK Last year, travel intermediaries were hit by fraud that amounted to US$21 billion in losses, according to research by eNett International, a travel payment solutions provider — and the situation may get worse. The same source warns that the numbers could swell to US$25 billion, in view of the fact that travel bookings are migrating online, and the rate of fraud, too, is on the rise. As travel agents look to adopt a digital-first approach, it may be a good idea to brush up on the risks involved, particularly those on the digital front. 1. Payment fraud Fraudulent online payments, while by no means a new type of fraud, has evolved over the years. On the digital platform, fraudsters are now better able to mask their identities and impersonate legitimate users to make bookings with fake or stolen credit card information. Some fraudsters have also found ways to monetise stolen information. Instead of booking fake trips, for example, they head to the dark web, where stolen data are often traded for money. While fraud prevention solutions can often be costly, it is possible for travel agencies to monitor payment processes for suspicious patterns. For example, some telltale signs include the amount transacted, the currency used, as well as the geolocation of transactions. Agencies may also analyse IP and Travel industry and professionals are more exposed to fraud than before. Here's how to stay protected and vigilant. Digital fraud: new frontiers and patterns By Naomi Neoh email addresses to see if they are linked to previous fraudulent activities. 2. Malware and Phishing Scams Consumers are not the only ones who are vulnerable to phishing and malware scams. In fact, according to PricewaterhouseCoopers' (PwC) Global Economic Crime and Fraud Survey from 2018, nearly 70% of malware- and phishing- related scams are targeted at big corporations. Not only do these cyberattacks disrupt businesses, they can lead to substantial financial losses, too. In fact, 24% of organisations, according to the same study, suffer asset misappropriation, and a further 21% experience digital extortion. 3. Mobile App Frauds Travel agents looking to allocate part of their budget on mobile app marketing, be wary of mobile app frauds. What are mobile app frauds, you ask? The fraud in this case is linked to the payout. If an advertiser pays by the amount of impressions garnered, the fraudster would fake the impressions; if an advertiser pays by the cost per install, the fraudster will in turn create fake installs. That way, they cheat money from advertisers while your marketing efforts go down the drain altogether. Just how serious is the problem? According to Appsflyer, a mobile attribution company that helps to detect fraud on apps and mobile devices, travel apps have the highest share of fraud rate — more so than other verticals like shopping, gaming and finance. Findings published in the company's Mobile Ad Fraud study revealed that more than a quarter of travel apps (27%) were heavily affected, meaning that at least 30% and above of all app installations were fraudulent ones. This has cost advertisers a whopping US$65 million in Q1 of 2018 alone, or a 15% rise in fraud levels compared to Q4 2017. Such cases are not just happening in faraway markets either. Three of the top four countries most financially exposed to app install frauds are in Asia. After the United States, which tops the rankings at US$98 million, comes India (US$26 million), Indonesia (US$24 million) and Japan (US$21 million). "Compared to North America and Western Europe, South-east Asia has a lower than average payout. However, due to its high volume of users, and the aggressive growth of mobile marketing budgets, this makes the region very attractive to fraudsters," said Paul Michio McCarthy, director of sales, APAC, AppsFlyer. Only human The bad news in all of this is that fraudsters are constantly evolving with the times. However, recognising the risks is half the battle. The next step is to not just invest in the right kind of technologies, but to also learn the human behaviours behind the fraud. Addressing the incentive, opportunities and the rationalisation behind the fraud is the best way to combat this growing, worrying trend. With the rate of reported economic crime rising to 49%, businesses are continuing to increase spending on combatting fraud. According to the same PwC survey, 42% of companies surveyed reported increases in the amount of funds used to combat fraud in the past 24 months, a trend that is likely to continue into the next 24 months. Looking for opportunities in the digital realm? So are fraudsters. "[In 2017], travel intermediaries were hit by fraud that amounted to US$21 billion in losses." SINGAPORE TOPS THE LIST IN ASIA FOR APP INSTALL FRAUDS PHOTO CREDIT: GETTYIMAHES

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