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Tis the Season for Fraud; Online Travel Scams Heat Up
By Scott Waddell, Chief Technology Officer at iovation
It’s well documented that during the summer, travelers take to the road and sky in droves
embarking on new adventures and arriving at exciting destinations. So it’s no surprise that also
during the summer, they turn online to book flights, hotels and rental cars.
Correspondingly, a growing number of cybercriminals also go online during the summer to
perpetuate fraud against travel sites. After analyzing the billions of transactions we screen
annually for fraud here at iovation, we found that fraudulent activity perpetuated against online
travel sites increased significantly during summer months of June, July and August. Our
research also suggests consumers utilize mobile devices on the road to book their travel for
greater convenience, and that fraudsters seek the same advantage.
All this gloom and doom is fine and dandy, but without insights into what to look for when it
comes to both fraud and legitimate transactions, companies are fighting fraud and trying to
serve their most valued customers with one hand tied behind their back. Therefore, along with
the top-level analysis, we are breaking down what to look for when it comes to good vs.
fraudulent transactions, device types and geography on online travel sites during the summer.
Rises in Summer Transactions and Fraud
Total Transactions—The volume of online travel transactions during an average summer month
was higher than a typical month the rest of the year. This uptick is consistent year-over-year:
Eight percent in 2015
Thirty-nine percent in 2014
Three percent in 2013
Mobile Usage—Travel transactions conducted from a mobile device during an average summer
month were higher than a typical month the rest of the year by:
Fourteen percent in 2015
Forty percent in 2014
Thirty-six percent in 2013
Travel Fraud—The amount of fraudulent online travel transactions during an average summer
month was higher than a typical month the rest of the year by:
Nine percent in 2015
Nine percent in 2014
Twenty-three percent in 2013
11 Cyber Warnings E-Magazine – July 2016 Edition
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