CyberSource Hosts First Airline Fraud Forum in MEA
Forum brings together world’s leading airlines to discuss trends in fraud affecting the industry
Dubai, United Arab Emirates – 28 April 2016: CyberSource, a Visa Inc. company (NYSE: V), on Tuesday hosted the first ever Airline Fraud Forum in the Middle East and Africa (MEA) to highlight the growing risks of data theft, including loyalty program fraud and mobile fraud, for airlines in the region.
The one-day forum was in line with CyberSource and Visa’s commitment to engage with clients and stakeholders on the increasing threats of cybercrime and ways to boost security at a time when consumers are increasingly adopting innovative digital payment systems. A number of leading airlines from around the region participated in the forum, and was supported by IATA, the trade association that represents and serves the airline industry worldwide.
Javier Mejia, Vice President, Visa Merchant Sales and Solutions, Central and Eastern Europe, Middle East and Africa, said: “Although such industry events have been held before in Latin America and Europe, we identified a gap in the MEA region at a time when it is more imperative than ever that airlines are aware of the risks they face related to loyalty programs and ticket booking services. The regional airline industry is increasingly playing a central role in the global airline network, with Dubai now classified as a leading hub with its strategic geographic location. Growing tourism to the region and rising passenger traffic have made Dubai the world’s busiest airport. It is, therefore, vital that regional airlines ensure their systems are able to securely store and manage customer data, as any leaks can lead to severe reputational and financial damage.”
The threat of data theft has increased globally over the past few years as more personal consumer data, including credit card information, travel and work habits, and hobbies and preferences, comes online. While these risks affect almost any industry across the world, there are certain threats that are associated more with services offered by airlines, such as loyalty program fraud.
Loyalty programs offered by airlines are becoming targets for fraud, according to RFi Group, where fraudsters purchase points with stolen cards, redeem these points for goods and services, and take over loyalty accounts that belong to genuine customers.  A report by consulting firm AI Group Inc. showed that about 72 percent of airline loyalty programs have been prey to fraudsters, and 30 percent say the problem is growing each year.
Hector Rodriguez, Regional Risk Officer, CEMEA, Visa, said: “Loyalty program fraud is a relatively new phenomenon, but one that is rapidly growing as airlines try to expand their loyalty program benefits to beyond simply seat and meal preferences. They are now seeking information about their customers’ lifestyle and travel habits that can have major adverse implications if this information is stolen. Airlines need to be aware of this risk and beef up network security in order to create efficient personalized rewards and customized travel experiences for consumers.”
Passenger traffic at Dubai Airport crossed 6.38 million in February 2016, up 6.9 per cent from the same month in 2015, according to operator Dubai Airports, led by passengers from Eastern Europe, India, North America and the GCC. This trend is expected to continue growing, with the direct contribution of tourism to GDP for Middle Eastern economies expected to have risen by 4.7 percent in 2015 from 2014, according to a report by the World Travel and Tourism Council.
Mr. Rodriguez added: “One of the challenges for airlines is to create intelligent ticket booking systems that understand the nuances of differing consumer behaviors and ensure that it builds rules that do not turn away genuine customers by identifying them as fraudulent due to traditional laptop or PC security systems.”
Commenting on the anticipated impact of the forum, Mr. Mejia said: “The Airline Fraud Forum is an excellent platform for regional airlines to discuss methods that can improve conversion rates and lower payment fraud while ensuring they optimize operational costs. We are looking to make this an annual event and hope to extend it to benefit a number of related industries in the future, such as hotel operators, car rental companies and reservation portals.”
CyberSource, a wholly-owned subsidiary of Visa Inc., is a payment management company. Over 400,000 businesses worldwide use CyberSource and Authorize.Net brand solutions to process online payments, streamline fraud management, and simplify payment security. The company is headquartered in Foster City, California and maintains offices throughout the world, with regional headquarters in Singapore, Tokyo, Miami / Sao Paulo and Reading, U.K. CyberSource operates in Europe under agreement with Visa Europe. For more information, please visit www.cybersource.com.
About Visa Inc.
Visa Inc. (NYSE: V) is a global payments technology company that connects consumers, businesses, financial institutions, and governments in more than 200 countries and territories to fast, secure and reliable electronic payments. We operate one of the world’s most advanced processing networks — VisaNet — that is capable of handling more than 65,000 transaction messages a second, with fraud protection for consumers and assured payment for merchants. Visa is not a bank and does not issue cards, extend credit or set rates and fees for consumers. Visa’s innovations, however, enable its financial institution customers to offer consumers more choices: pay now with debit, pay ahead of time with prepaid or pay later with credit products. For more information, visit www.visamiddleeast.com.
© Press Release 2016
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