In the travel industry, trust is everything – but fraud is quietly chipping away at it, costing over $25 billion annually. Here are the top threats and how to protect your business…
1. Fake bookings and stolen credit cards
Fraudsters use stolen card details to make bookings, which later result in chargebacks after services are delivered.
Fight it: Take a multi-layered approach to fraud prevention by using fraud screening tools, tokenized payments, and monitoring for unauthorised use of your brand.
2. Overpayment and refund scams
Scammers overpay with stolen cards, then request refunds to different accounts. Once the original payment is reversed, you lose twice.
Fight it: Enforce strict refund policies, watch for unusual refund requests, and use AI-driven fraud detection tools.
3. Merchant impersonation
Fraudsters mimic your website and branding, tricking customers into booking through fake portals.
Fight it: Use secure payment gateways with fraud protection, verify social accounts, and clearly display contact information.
4. Chargebacks (friendly fraud)
Customers dispute charges after enjoying the service. This “friendly fraud” makes up 60-80% of all chargebacks.
Fight it: Clearly state your terms, use recognisable merchant names, keep transaction records, and leverage secure platforms. See Ecommpay’s guide to chargeback fraud for expert support.
5. Phishing and fake confirmation emails
Reports suggest 91% of all cyber attacks start with phishing emails. Scammers send fake confirmation emails using your brand, asking for payments or personal details.
Fight it: Send only secure, branded communications and educate customers on what legitimate contact looks like. Multi-factor authentication adds an extra layer for high-value bookings.
Stay smart, stay secure
Fraudsters are evolving – but so are the tools to stop them. By using smart tech, clear policies, and trusted partners, you can protect your business and your customers.
About Ecommpay
Ecommpay offers secure, seamless payment solutions with 100+ payment methods, direct acquiring, and expert support – all through one integration.
