Airline fraud on the rise, finger pointed at loyalty programs and data breaches

The rate of online fraud in the aviation sector has increased 61% in the past year, according to the latest Fraud Attack Index from Forter.

The fraud prevention specialist says the rise can be attributed to loyalty programs as well as data breaches, such as that suffered by British Airways just over a year ago.

In July, BA was informed that the U.K.’s Information Commissioner’s Office intended to fine it more than £183 million for the data breach.

Overall, according to Forter, loyalty fraud across the whole industry has increased 89%, with attackers using points as a funding source.

The report also highlights a 38% rise attacks involving ground transportation brands, with car rental and ride-hailing services where seamless platforms can mean there is an increased vulnerability, it claims.

Train and bus services meanwhile are more likely to fall victim to local fraudsters who exploit return policies.

Conversely, the hotel sector has seen a 10% decrease in fraud, which Forter says could be down to action taken by companies to make transactions a bit less seamless in return for increased security.

Marriott International reported a data hack involving 500 million customer accounts last November and was also handed down a fine, of £99 million, by the ICO earlier this year.

Security experts have been warning the travel industry for some time that attacks are increasing in sophistication and becoming more targeted with Forter adding that it's about a "more meaningful larger payoff.

Identity manipulation, instrument manipulation and collusion between fraudsters, particularly in marketplaces, are all methods that have also seen an increase in the rate of attacks in the past year.