Wednesday, July 24, 2024

Travel Sams: Frauds that Companies Face and Measures to Mitigate Them

The tourism industry is flourishing daily, and the digital advancement has increased the attention of tourists towards it. Because the online shift has created convenience in booking hotels and tickets; secondly, social media has also enhanced people’s mindfulness towards traveling. Digital media influences millennials; when an influencer visits a location and uploads pictures of that area, other people prefer to see that scene. The rising number of visitors also faces travel scams, as no single industry is protected from scammers’ activities. In 2022, in Australia, 74.5 thousand cyber crimes were reported; this tremendous ratio can be controlled through document verification.

What are Online Travel Scams?

Tourists face cybercrime while online hotel and ticket booking; credit cards, fake hotels, and illegal travel agencies are scamming tourists. Companies can mitigate travel scams by integrating document verification. The biometrics are used to verify the identity of the tourists, and only authentic users will be allowed to connect to the company.

Types of Travel Fraud and How They Can Be Diminished?

The following are the types of travel scams:

  • Travel Insurance Fraud

Some companies present themselves as insurance agencies, and they charge money from the clients and in return, they do not perform any activity. Clients think that these are actual companies, but in reality, they do not even actually exist.

  • Travel Hidden Fraud

Fake travel lotteries or deals dodge tourists; they must be aware of the hidden charges while booking the hotel. Sometimes, tourists are given lottery tickets, and these win prizes practically do not exist.

  • Stolen Credit Card Fraud

When the clients perform online transactions for the payment of hotels, the hackers steal their credit card information and later use it for their illicit purposes. Some hackers use the tourists’ bank details and decode the account’s algorithm.

  • Fake Hotels

The most common travel scam is fake hotels that do not exist; some companies present on social media that they are hotels and upload affected clients’ reviews on their page. So that tourists consider it an authentic resort; when visitors book the hotel, they ask for advance payment, but when the travelers reach the desired location, they come to know that the hotel does not exist.

  • Chargeback Fraud

In chargeback frauds, the merchant dodges the tourists and asks them to make the payment from their hotel booking account. For this purpose, they have to send some money to the company, and in return, the organization will cancel the booking and return their money. When the tourist performs the transaction, the operator does not respond after this. They usually turn off their number, so the client loses money in online travel scams.

  • Fake Flight Booking

Scammers attract the travelers with fake deals, and they give captivating offers to them. Tourists consider them real and book their flights; they have to send some advance payment. However, after the transaction, they learned that the flight agency was fake and no booking was performed in the client’s name.

How do Companies Perform KYC Authentication in their Daily Activities?

Know Your Customer (KYC) is a feature of a biometric system; through this, companies understand their clients. The organization onboard the clients by performing verification, and for application, clients are asked to submit scanned copies of their documents. These papers include identity cards, bank statements, visas and passports. Tourists do not have to visit the office to book tickets; they can perform this at home. Travel scams are mitigated when only real customers connect to the business; companies can continuously monitor tourist activity. 

Can Travel Agency Survive without Integrating KYC Authentication?

As discussed earlier, the tourism industry is at the edge of travel scams; this industry can only survive by integrating KYC authentication. Travel scams are mitigated as only verified clients will affiliate with the company. Companies can increase their client rate with the biometric solution, as tourists can book the hotel from the comfort of their homes and the resort; they do not require staff at the front desk. They can even unlock the hotel door by facing the camera; in this way, the expenses of the resorts are also reduced. They require less staff, and travel frauds are minimized through it.

Conclusion

Customer satisfaction is the core value of the travel and hospitality industry, and they have to understand the desires of their users. Companies integrate the biometric system to facilitate clients to the maximum, as these scanners provide a friendly interface and smooth services. Hotels and restaurants can reduce their daily operations and simplify their activities. Travel scams can be decreased through it, as data breaches and money laundering are breached through it. Companies can only rank globally or succeed with these solutions, as they give competitors an advantage.

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