With Mobile Payments Fraud on the Rise, CellPoint Mobile Urges Airlines to Protect the Integrity of Payments & Value of Frequent-Flyer Programs
Company’s mFraud™ Solution Enables Airlines to Mitigate Fraudulent Payments and
Monitor Loyalty Program Activities So Passengers Can Transact With Confidence
DALLAS – FORT WORTH, TX (Oct. 28, 2015) – As more cyber-attacks and fraudulent activities follow mobile payments into the global marketplace, airlines must adopt and deploy internal solutions that can monitor, alert and halt fraudulent activity and simultaneously protect their valuable frequent-flyer programs from digital threats, according to CellPoint Mobile.
A global payment solutions company whose technology enables airlines to easily manage and control the complex and costly travel payments ecosystem, CellPoint Mobile makes the case for enhanced fraud-prevention strategies in the wake of recent reports showing that mobile payments, which currently represent 14% of U.S. merchant transactions, make up a disproportionate 21% of fraud cases, according to Bloomberg News.
“Statistics indicate that about 40% of airlines have experienced some type of loyalty fraud, and about the same percentage have no security measures in place to protect their frequent-flyer programs,” says CellPoint Mobile CEO Kristian Gjerding. “With nearly two in five travel bookings now being made in the mobile environment, fraudulent activity will inevitably follow. Airlines need solutions that can protect payments, passengers, the financial value of their loyalty programs and their reputations.”
Anti-fraud solutions can protect airlines, passengers, brand equity
In addition to targeting mobile payments, predicted to rise from $32 billion in 2013 to $67 billion in 2015, according to Forrester Research, some hackers and fraudsters are also targeting airline’s frequent flyer miles, estimated at $21.4 billion in 2015, according to Gjerding. Common schemes include:
• Outright hacks of members’ accounts and theft and transfer of miles
• Online mileage brokers, who buy unused or unwanted miles from members and sell them to other buyers for cash (or other goods) at far below market value
• Employee theft and manipulation of their own or others’ miles, points and rewards
Fraud-related airline vulnerabilities include the loss of the stolen miles, loss of the miles’ financial value as airline assets, reimbursement and recovery costs, and eroded passenger confidence and trust among airlines’ most valued and valuable passengers. CellPoint Mobile urges airlines to treat frequent-flyer and loyalty program accounts as bank accounts and to deploy a series of checks to identify, interrupt and halt fraud, including:
• Stepped-up authentication measures for members’ rewards and frequent flyer programs
• Real-time transaction-tracking solutions to monitor fraud proactively
• Alerts that can flag the early warning signs of fraud, including questionable transactions or requests below configured thresholds
• Higher-level measures, including mobile-optimized security features, multi-factor authentication, voice and biometric security, one-time passwords, device fingerprinting and stored payment information
CPM Exec on Payments Fraud Panel
CellPoint Mobile’s Vice President Tony Jensen will address airline executives at the upcoming Airline & Travel Payments & Fraud Conference in Fort Worth on Thursday, Oct. 29, in a presentation “The New Frontier of Fast Fraud – From Data Breaches to Loyalty Fraud, How Safe Are You?”
For more information about CellPoint Mobile, the Converged Payment Gateway, or to schedule an interview with Kristian Gjerding, please contact Vanessa Horwell at firstname.lastname@example.org or +44.203.807.3735 in the UK, or Karina Castano at email@example.com +1.305.749.5342 x240 in the US.
About CellPoint Mobile
Making Travel Payments Easier
CellPoint Mobile helps airlines around the world navigate and own the complex payments ecosystem from beginning to end, regardless of their passengers’ preferred currency, payment method, device or channel. Its technology infrastructure, solutions and professional services enable airlines to manage and process payments and transactions from a single, data-integrated platform, regardless of channel, device or currencies. With offices in London, Miami, Copenhagen and Pune, CellPoint Mobile serves global and regional airlines. Since 2007, its Commerce Orchestration Platform has helped companies across the world fulfil their digital strategy, increase sales and improve margins. Visit www.cellpointmobile.com or email firstname.lastname@example.org for more information.