FREQUENT-FLYER FRAUD


AS LOYALTY SCHEMES LOOK FOR WAYS TO ENCOURAGE MEMBERS TO USE THEIR POINTS, CYBER CRIMINALS ARE CASHING IN, SAYS STUART BARWOOD OF FRAUD PREVENTION SPECIALIST FORTER


A


s consumers start to think about plans for the year, for many this means booking a holiday.


To do this they might be looking to


FDVK LQ RQ IUHTXHQW \HU SURJUDPPH SRLQWV WR SD\ IRU LJKWV DQG KRWHOV But when they check their


DFFRXQWV WKH\ PLJKW QG WKH\ don’t have quite as many points banked as they thought. That’s because those points have


been stolen by cyber criminals to sell on the deep and dark web or, worse, to enjoy their own luxury holiday. Today, nearly half (45%) of loyalty


programme accounts are inactive, with consumers failing to track or redeem points. This is one big reason that IUDXGVWHUV QG DLU PLOHV VR DOOXULQJ But it is not real money, you might


say? I would beg to differ. Loyalty points and miles are being targeted because they represent cash to hackers. Likewise, it is very real for the


consumer who must pay full price for an airline ticket or accommodation rather than use air miles rewards. By the same token, it is real money


for the airlines, which may have to pay to compensate customers and partners in their network. ,W LV DOVR D VLJQLFDQW OLDELOLW\ WKDW


sits on the airline’s balance sheet. The faster the airline can turn air miles into revenue, the better. Therefore, loyalty points must no


“Loyalty points should not be regarded as free vouchers – they


are assets that impact airlines’ financials”


longer be regarded as free vouchers. In fact, they represent substantial assets WKDW LPSDFW DLUOLQHVȇ QDQFLDOV


LOYALTY POINTS


When I talk about loyalty points, I am referring to points accrued by SDVVHQJHUV WKURXJK IUHTXHQW \HU programmes and associated co-branded credit cards, in addition to leading hotel loyalty schemes. These can be redeemed for items


that are untraceable, such as gift cards, which is why they are such a target for fraudsters. :LWK IUHTXHQW \HU SURJUDPPHV


should accounts be hacked, the credentials of any associated co-branded credit cards could also be


18 — FEBRUARY 2020 — TRAVOLUTION.CO.UK


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