Airlines Voice Need for Enhanced Fraud Detection Capabilities, According to Survey Conducted by 41st Parameter®

  • More rules and increasingly sophisticated fraud detection tools essential to Travel Services Industry's success warding off current and emerging trends
Scottsdale, Ariz. – Aug 5, 2009 Fraud detection tools and payment fraud losses are top of mind according to a recent webinar and poll of airline fraud investigators. The survey results, released today by 41st Parameter Inc, a leading provider of fraud detection and prevention systems to the Airline Industry, report insufficient rules and defense mechanisms in place at most airlines. The results forecast the continued emergence of new reservation booking vehicles and a shift in the payment landscape. Additional details include:

Fraud Prevalent Industry-wide – Every airline reported some measure of fraud within their Card Not Present channels, with nearly one-quarter experiencing elevated percentages.

Need for More Rules – Over half the airlines reported fewer than 26 fraud rules in use by their existing fraud detection solutions to evaluate the transaction risk.

Alternative Payments – Alternative payments, such as eBillMe, BillMeLater, PayPal and Google Checkout, are now the preferred form of payment over debit or credit cards for 6 per cent of the airlines.

SmartPhones and Game Consoles on the Web –
More than 30 per cent of the airlines reported up to 5 per cent of reservations come from a mobile device or game console, with another 8 per cent reporting up to 20 per cent of transactions from these devices.

Airlines report more than a billion dollars annually in online fraud loss. To effectively reduce these losses, each needs to be up-to-date with the appropriate technologies and be prepared for fraudsters to exploit new forms of payment and booking channels.

"The Travel Industry is under siege by well-organised international fraud rings. Without comprehensive technology tools to aid investigators, airlines face a greater risk of fraud succeeding, especially as fraudsters exploit new channels and payment methods which in many cases are not currently detected," said Ori Eisen, founder and chief innovation officer, 41st Parameter. "41st Parameter utilises over 400 rules in conjunction with sophisticated device identification capabilities to help our customers, including some of the world’s largest airlines, prevent fraud before it happens – and significantly reducing bad debt write-offs."

Other survey questions posed include:

- How many payment options do you offer beyond credit cards?

- What percentage of your fraud is from international or cross-border transactions?

- What percentage of your reservations are written off as bad debt or fraud?

- How many Fraud Investigators does your company employ?

The complete list of questions and responses, along with the webinar recording, are available by request at:

Additional 41st Parameter Airline Industry Press Releases:
41st Parameter Speaking about the "Importance of Device Data for True Intelligence" at Airlines Reporting Corporation (ARC) Forum

Airlines Tackle $1.4 Billion Online Fraud Challenge With 41st Parameter’s Device Identification Technology

US Airways Selects 41st Parameter’s FraudNet

41st Parameter Enables Airline & Travel Industry Service Provider MITec to Expand Business and Protect Clientele

41st Parameter and Leading Airlines Battle on Card Not Present Fraud

41st Parameter Provides Fraud-Reduction Solution to Continental Airlines for Card-Not-Present ticket sales

About 41st Parameter
41st Parameter provides solutions for detecting and preventing fraud across multiple channels for the world's most valued and recognisable brands. Leading financial institutions, e-commerce companies and travel services businesses rely on 41st Parameter's technology to protect them from cybercrime threats including Card Not Present fraud, new account origination fraud, phishing and account compromise, credit bust outs and fraud ring attacks. Founded in 2004, 41st Parameter makes the process of detecting and preventing fraud easier and more effective, reducing both expenses and potential losses. As a leading web fraud detection innovator the company supplies industry-proven solutions which integrate advanced device identification with comprehensive risk management capabilities. To learn more about 41st Parameter, visit

Survey results are nonscientific and for informational purposes only. All trademarks are the property of their respective owners.

Dave Yohe
Corporate Marketing
41st Parameter
Tel: +1.480.776.5518

Caroline Addy
IBA, PR for 41st Parameter
Tel: +44(0)1780.721.433

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