New system to aid crackdown on fraud

New system to aid crackdown on fraud

Report by LEEWINTER

THE TRAVEL industry is set to benefit from a new automated system that will allow agents to check credit-card billing addresses and security codes with banks from spring next year, in a bid to combat fraud.

A date for the introduction of the new system, which was developed by leading banks, has not yet been agreed but it is thought to be early next year.

According to latest figures obtained by ABTA, the travel industry suffered losses of over £5.3 million during last year.

Organised gangs were increasingly involved, while 45% of total card losses in the travel industry came from card transactions made using the phone, mail or the Internet, where the card wasn’t seen.

ABTAhead of financial services Mike Monk said the new system would save agents thousands of pounds.

The checks will be available over the telephone when agents seek credit-card authorisation for bookings. Agents can also buy new software available from banks which would enable them to further check the numbers only visible on the card itself.

The move follows calls from fraud specialist John McVitie earlier this year for increased security for cardholder-not-present transactions (Travel Weekly February 14).

Meanwhile, ABTAis stepping up its attempts to beat credit-card fraud by backing an annual publicity campaign for the first time. Card Security Week, which starts today and is organised by the Association of Payment Clearing Services, sees ABTA joining forces with the retail and banking industries to highlight the issue. Card Security Week will involve a media blitz plus a competition offering £500 for the best idea to combat fraud.

ABTA has also joined a Home Office forum which is looking at additional ways to deal with problem and will meet at the end of the year to discuss additional measures.

Monk said: “We are one of the most targeted industries. Fraud is growing and because there are more avenues available like mail order, digital television and the Internet, it will continue to do so.

“All we can do is reduce the opportunity for them to succeed. We have been very active for the past two to three years with seminars and a leaflet giving agents practical advice.

“We are stepping it up in the sense we are joining forces with anyone who will have us on board to give a travel industry perspective,” he added.

Agents will be able to check billing addresses and gain credit-card authorisation over the telephone

Monk: the new system will save travel agents thousands of pounds