The travel industry has been grappling with the ever-increasing threat of scams targeting travellers, resulting in staggering financial losses.
Recent reports estimate that fraud costs the travel sector over $21 billion annually, with $6 billion attributed to damages and a significant $15 billion in operational overheads.
Experian’s 2022 Global Identity and Fraud Report found that approximately 70 percent of businesses have expressed heightened concerns about fraud compared to the previous year, and a staggering 58 percent of consumers have either fallen victim to online fraud or know someone who has.
These concerns are undoubtedly mirrored in the travel industry, where fraud poses substantial financial burdens and operational challenges.
Aside from direct financial losses associated with fraudulent transactions, the travel industry faces the risk of compromising personal data and suffering reputational damage. Unauthorised logins to customer accounts can lead to customer retention problems, adding further complexity to the issue.
In response to this pressing issue, American Express Global Business Travel (Amex GBT) has partnered with Expedia Group to implement a cutting-edge solution designed to combat fraudulent activities and protect corporate travel clients.
The collaboration sees Amex GBT adopting Expedia Group’s Fraud Prevention as a Service (FPaaS) solution for travel bookings on its Amex GBT Egencia solution. FPaaS blocks fraudulent transactions before they happen, reducing unscrupulous activity and enabling more protection for their clients.
Expedia Group’s FPaaS, leverages extensive data models derived from over 25 years of industry experience. Harnessing the power of artificial intelligence and machine learning (AI/ML), the solution analyses signals and promptly identifies suspicious activities whenever behavior patterns deviate from the norm. This approach allows for intervention before fraud can occur, mitigating potential risks.
Karen Bolda, Senior Vice President, Demand Solutions, Expedia Group, highlighted the significance of their AI-driven solution, stating: “By leveraging AI and machine learning, we’re happy to be offering Amex GBT a simple and effective way to help them manage fraudulent activity, ultimately, giving their customers better peace of mind when they’re booking trips.”
This partnership signifies the substantial progress made between Expedia Group and Amex GBT since Expedia Group’s sale of Egencia to American Express Global Business Travel in 2021. John Sturino, Senior Vice President of Travel Products and Engineering, Amex GBT, expressed their commitment to delivering cutting-edge solutions while upholding the highest security standards.
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