National Travel Associates

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Maximilian Ferguson
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1 National Travel Associates Fraud Prevention Module 2012 National Travel Associates

2 Fraud In The Travel Industry With the popularity of online booking engines in the 90 s there was a huge insurgence of fraud based bookings. The ability of fraudsters to use credit cards that were either stolen or copied was easy. Many of these companies took losses in the millions of dollars and were forced to implement software to eliminate these types of transactions. Due to the lack of personal support during the booking process it was easy to use a credit card, gain the booking and experience the travel before the owner of the credit card was even made aware of the transaction.

3 How did this Happen? One of the largest online booking engines was Expedia. Expedia was developed and owned by Microsoft. They are software and hardware developers and not travel agents. Their main purpose was to develop a website where clients could book at their own ease, however this failed in terms of client support and provided a lack of personal service. This opened the door to fraudsters being able to book and use travel by simply entering fraudulent credit card details.

4 Online -vs- Travel Agent The online version of travel booking engines has the ability to mislead clients in several areas. By not being forthcoming with regards to actual pricing, lack of human contact and customer service. A computer is unable to see the client and communicate with them. There is no relationship building. A travel agent is able to get to know their clients, build relationships and offer them the information they need to make an educated and informed decision on their travel package.

5 Risk Prevention When a client uses a travel agent it benefits both the client and the agent. A travel agent is able to speak directly to their clients, meet with them in person and ensure the information and payment are indeed correct. Online booking engines do not have this option. They are designed to offer information and enter payment details. Unless the credit card being used has been red flagged the system will proceed with the booking and issue the client their reservation details.

6 What is Fraud 1. A deception deliberately practiced in order to secure unfair or unlawful gain. 2. A piece of trickery; a trick. a. One that defrauds; a cheat. b. One who assumes a false pose; an impostor.

7 How Can it Effect You? Financial loss Loss of professional reputation Loss of credibility High levels of stress Time and effort taken from sales to fix the situation Time spent to rebuild your reputation Client testimonials Social media Attacks In your community

8 Most Common Travel Fraud Airline Tickets Fraudsters will contact you via stating the need a ticket within the next 2-3 days or sooner. They offer no telephone contact and prefer to have all communications done via . Third party credit cards and refuse to sign any credit card authorization forms Disappear after you force the need to communicate via telephone or in person. Provide you with destinations that are most likely international and not domestic.

9 Tricks of the Trade These fraudsters use accounts such as gmail and hotmail for example. If they call your office, their telephone number may be attached to a VoiP system which means they can call you from international locations however the telephone number would be attached to a North American line Mailing addresses attached to a business depo type mail retrieval source such as The UPS Store. Use a fake relationships with International Aid or non profit organizations to make their profiles look more reputable.

10 Steps to Protect Yourself Identification Credit card fraud is a type of theft. A person commits credit card fraud by using a credit card to purchase products or services without the cardholder's authorization. This type of crime harms the cardholder and the business that sold the products or services. The cardholder may lose part of the money for the transaction, depending on the terms of his credit card agreement, and the business may lose the transaction money and face chargeback fees, which are fees a credit card company charges merchants for returning transactions.

11 Steps to Protect Yourself Prevention/Solution Often, preventing credit card fraud requires more than one solution. You may find that you need to check IDs and signatures, look for security features, such as holograms, on credit cards, and verify that the address, postal code and telephone number you are given matches the cardholder's account information. You may also request verification codes for online transactions as part of your prevention process. Sometimes, preventing credit card fraud requires you to consider your gut feelings about a transaction. If you've received a very large order from a new customer, you may decide to do some extra checking before you book the package. Likewise, you may decide to be particularly cautious about accepting international orders, calling the card's bank to verify the information you've received from the purchaser.

12 Steps to Protect Yourself Considerations Though it can be time-consuming, you may consider adding an additional step to the processing of a clients travel reservation you receive by phone or Internet. After collecting your customer's name, address and phone number, you may call to confirm the order. In the case of fraud, the rightful cardholder may answer the phone and reveal that he did not place an order with your company. Fraudsters will sometimes use a clients actual contact information so the credit card will match the records on file.

13 Steps to Protect Yourself Misconceptions Often, business owners believe that credit card fraud is limited to those who do not have authorization to use a cardholder's credit card. This is a misconception, as some legitimate cardholders commit friendly fraud. This sort of situation occurs when a client orders something with his/her credit card but claims he/she did not authorize the purchase in order to get a product for free. You may prevent this type of fraud by having the client sign a credit card authorization form and have written confirmation as to the booking dates, price and details.

14 Effects Steps to Protect Yourself Spending time on credit card fraud prevention can help you to save time and money. By heading thieves off now, you can avoid spending time talking to authorities and disgruntled cardholders later. Likewise, you can avoid devoting time to finding an individual who has used credit card fraud to obtain your products or services. With a good fraud prevention system in place, you can avoid having transactions reversed, charge back commissions and any fees the credit card company or supplier may charge.

15 Steps to Protect Yourself Match name on to name on credit card Most all s have a name attached to them when you receive them. Is the name on the matching the name the person that is signing, on their communications or providing you via the telephone? Google the address they are using to see if it comes up on any fraud sites this is a long shot as they change them frequently however there is always a chance.

16 Steps to Protect Yourself Addresses attached to a domain name Some fraudsters will use.com addresses to make themselves look more professional. If your potential client is ing you from an such as name@businessname.com for example you can search the domain name by entering it into the WHOIS database to see who and where it is registered. If the domain is registered in Russia and your client tells you they are from Nova Scotia that is an initial red flag.

17 Office Fraud Prevention Try to contact your clients via telephone or schedule personal meetings Discuss their travel plans in details as to build the relationship and see if any red flags are present Avoid only bookings that require departure to be immediately Contact the credit card company to ensure the card has not been reported as stolen Follow up with actual client to confirm reservation Use credit card authorization forms and get card imprint when possible. Ask for secondary identification

18 It is rare BUT be vigilant You will find that suppliers are changing over to implement more stick credit card acceptance rules such as signed authorization forms. Historically this was done using Airline Tickets however fraudsters are becoming more and more diversified. Try to avoid third party credit card orders. This is where most charge backs are issued Be vigilant with all /facebook requests we realize you are excited and want to sell travel however by implementing these procedures you will decrease these occurrences.

19 How am I responsible All chargebacks are payable by the booking agent and not the agency. A chargeback dispute will be issued and we will request the documents pertaining to the file from you. This would be all electronic and hard copy documents. An investigation will be initiated by the credit card company and the signed authorization forms will need to be submitted. Please note a confirmation is NOT suitable and will be refused as evidence. The chargeback can be the cost of the commission up to and exceeding the total cost of the reservation.

20 Eliminate the risk by implementing changes as they arise.

21 THANK YOU

Target Breach Overview

Target Breach Overview Q: Media reports are stating that Target experienced a data breach. Can you provide more specifics? A: Yes, Target has confirmed that it experienced unauthorized access to its systems