The digital world brings new trends every day. Business enterprises are now simplifying their operations due to the helping hand of technology. Their customers can now have a better experience and can be reached out more easily. However, these advantages don’t come without their cons and unfortunately, the rise in technology has also led to a rise in crimes. Many businesses are suffering fraud in their particular industry and the travel industry is one of them. The scam of the fake passport has been so common for such a long time now and people have used it as a way of illegal immigration or to smuggle illegal products. This is why the travel industry must have a passport scanner to be safe from such fraudulent acts. Continue with this blog to know more about the types of scams in the travel industry and how technology is helping to reduce frauds in the travel industry.
Frauds that Travel Industry face
Finextra report has revealed that the travel and tourism industry participates in 10.2% of the total GDP of the world. However, the travel and tourism industry loses around $21 billion every year in fraudulent activities. It is expected that this figure will be increased by 20%. This means the total amount accounts up to $25 billion.
Since the online means of operations, booking the airfare and hotel rooms of tourism spots have become easily accessible. People can plan their whole trip and pay for it before executing. Unfortunately, the travel agency scams have become really common.
Here are some of the frauds listed below that the traveling industry face:
- Fake Bookings
With the stolen identity cards and credit cards, the fraudsters can book hotel rooms or even air tickets. The ticket bought from such money can be resold in the black market. When the original owner realizes this, they ask the banks for the chargebacks which the bank cannot deny. Hence the hotels or the airline is left to face the loss of their money.
- Flight Credits
Sometimes criminals take advantage of the flight credits that the airline keeps on promoting. They use fake credit card information to buy the ticket and then return it. Buying the ticket can result in flight credits and bonuses which they use to buy the legitimate ticket.
- Money Laundering
Criminals have long used the means of traveling to pass their illegal cash to another jurisdiction so it can be used without any verification. Airports do not allow the transfer of money of more than $10,000. This is why they use fraudulent methods to take their cash out of the country and hence creating more fraud in the travel industry
Passing of illegal substances from one country to another is also a major concern that has long plagued the travel industry. Criminals traffick drugs or even weapons from one place to another. For that, they even use the fake form of identity and passports so they cannot be traced.
How to Fight the Fraud Through Technology
Technology might have created the ways for this type of fraud but it has also helped to eliminate it. AI-powered solutions have made it easier to combat these frauds through robust identity checks and passport scanners. Here are a few ways explained in detail that explain how fraud is combatted through technology in the traveling industry.
- Passport Scanner
This is a way of verifying the passport of the customer to ensure their identity. Passport scanner uses the technology of OCR-Optical Character Recognition that extracts the data from the passport into a digital form and the AI-powered technology then uses the extracted information to verify the authenticity as well as the identity of the customer and ensure that no suspicious activity is taking place.
- Face Verification
Another AI-powered solution that is used by the travel industry to fight fraud and verify identity is face verification. This technology uses the face of the person as their identifiers and uses that to verify their identity. Airports have face verification checks to ensure that criminals do not pass through the system and cause any trouble. Face verification can be done through 3D depth perception, liveness detection test, skin texture analysis, 3D mapping, etc. Passenger screening can be done through face verification.