All merchants selling airline tickets fall within the highest risk category of businesses that are allowed to apply for a U.S.-based merchant account. Airlines are exposed to card not present fraud estimated at close to $1 billion per year. Fraud attacks represent between 1% and 3% of the attempted transactions faced by airlines. However, some carriers reject between 8% and 25% of good orders because of their inability to interpret whether a book request is good or not.
For Visa Europe airline fraud is spread out with the most, 54%, occurring via unsecure ecommerce transactions not validated using the 3D Secure protocol. The next most common source of fraud is by telephone order at 32%. The remainder occurs even with 3D Secure protocol that has the customer authenticate their identity with their issuing bank. This highlights the need for verifying email address ownership and reverse searching phone ownership identity to cut down on fraud.
Airlines can integrate Pipl’s People Data API into a fraud scoring engine to run automated reverse search checks on transactions orders coming in to cut down on the number of rejected good orders.
How it works
An airline can integrate Pipl’s API into its internal or 3rd party fraud management platform to automate identity verification for new orders.
When a new order comes in, the fraud platform would query Pipl’s API with the customer’s submitted information and Pipl will return whether the name, email, telephone and/or address match. Those where the person’s name does not match either the phone number and email address provided will be marked with a score for manual review or rejected. Results regarding the email age of the email provided can also be factored into a risk score for determining whether an order requires review, should be rejected or can be approved outright.
The use of an automated solution will cut down on the need for manual reviews of ticket purchases. For example, when Aegean Airlines implemented an automated solution with ACI Worldwide the manual review rate dropped to 5% from 12%.
The customizable fraud scoring solutions that can do this sort of heavy lifting include Accertify’s Interceptas platform, ACI ReD Shield and Kount. Don’t wait until your merchant account is jeopardized, start using Pipl’s data today as part of an automated fraud prevention solution.
For those orders flagged for additional review, you can use Pipl SEARCH to manually examine the results of your searches. Sometimes the possible person results will help direct your analysts to the right person, cutting down on false positives.
To learn more about Pipl’s solutions request a demo by filling out our contact form.
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