Home » Travel Frauds: Preventing Scams Via Identity Verification Services

Travel Frauds: Preventing Scams Via Identity Verification Services

by janeausten
travel frauds

In the age of technological revolution, there are always new advancements happening and benefiting modern-day industries. Businesses want to use intelligent solutions to streamline their business operations and enhance customer satisfaction. Corporations also want to improve their profitability rates and the customer onboarding process to discourage travel frauds. In present times, cybercriminals use various deceptive techniques to achieve their illegal objectives. In this way, no corporation is safe from external attacks, and the travel industry is no different.

The convenience with which users can plan their holidays has enhanced customer satisfaction. In the travel sector, the rising fraud cases have perplexed business owners. They want to implement smart solutions to combat online fraud cases and ensure compliance with AML/KYC checks. The following article will teach entrepreneurs about new travel fraud and scam prevention techniques.

Travel Frauds: Various Techniques that Cybercriminals Can Use

Following are some prevalent fraud techniques that cybercriminals can use to disrupt the workflow of the tourism industry.

Money Laundering

Laundering money is the procedure of obscuring the source of funds by flowing it through various organizational structures. Following are the steps involved in the money laundering activity. 

  • Placement: This is about secretly entering illicit funds into the mainstream legal financial system
  • Layering: The phase is about concealing the true origin of money by making a series of financial exchanges and bookkeeping tricks
  • Integration: In the final stage, fraudsters withdraw the money from the legal bank account to achieve their malicious goals

Cybercriminals who want to launder money often target the tourism industry as it makes their objective easier to achieve. Business owners can quickly detect money and prevent the situation from exacerbating. In comparison, accomplices in money laundering crimes can use various fake identities to accomplish their goals. Consequently, the travel industry must implement identity verification solutions to discourage money laundering attempts worldwide.

Identity Theft

In present times, users want intelligent services to facilitate them in their tasks. The tourism industry wants to eliminate fraud to enhance customer satisfaction and safeguard the industry from hefty fines. In this way, businesses can skip outdated verification approaches and achieve the desired quality of results. After checking into a hotel, consumers can request their keys in the suite hassle-free. If the travel industry does not use intelligent ID verification solutions, fraudsters can exploit the loopholes and use the opportunity to earn rewards cards. Sadly, this approach exposes restaurant managers to chargeback fraud.

Payment Scams

This is a popular kind of travel fraud, specifically in resort areas. Such types of places experience a variety of identity scams and fake payment cases. Hackers check into hotels via fake reservations, exposing the top management to serious fraud risks. If they do not implement intelligent identity verification services, they can lose consumers’ trust and loyalty which will negatively impact their profit rates. Chargeback fraud cases are another technique that bad actors implement to exploit the hotel industry. Consequently, the tourism industry can prevent the use of stolen credit/debit cards for safeguarding the sector.

Smart ID Verification Solutions: Preventing Travel Frauds in the Tourism Industry

The industry is facing various challenges, such as scam attempts by perpetrators. They can use fake documentation to bypass the traditional verification processes. The only way to stop them from exploiting the industry is by implementing smart user identity verification solutions. This approach will help them restore trust with clients and improve their market credibility. Utilizing eKYC services is a progressive approach to combat travel frauds and protect the hotel industry. Thereupon, the sector must implement intelligent solutions to detect fraud and enhance customer satisfaction.

The Working Procedure Behind Identity Verification Solutions

Following is the complete working process of ID Validation Services for travel frauds prevention

  • Obtaining User ID Data

This is the first stage of the user identity attestation procedure, the intelligent system guides the consumers to submit an image of their government-issued records via screening it before a webcam. After the submission of desired data, the next phase utilizes OCR technology to extract the information. 

  • Executing the Validation Process

At this stage, the OCR technology captures consumers’ Personally Identifiable Information (PII) from the documents. The system also cross-checks the data during the onboarding procedure. In this phase, the intelligent solution also cross-checks the data from previously given information to establish authenticity. It helps in spotting discrepancies and other micro-level manipulations to discourage fraud. 

  • Receiving High-Quality Output 

After the evaluation of the users’ ID by comparing it with all possible checkmarks, the client receives the results in real-time in any case. 

Concluding Remarks

Technological advancements have influenced businesses positively and their users, but it has also enabled fraudsters to implement complex manipulative techniques to achieve their goals. The travel industry has implemented AI-powered KYC solutions, to protect its passengers from travel fraud. Identity verification services validate the credentials of the clients instantly to discourage fraud. The intelligent solution also helps the tourism industry ensure compliance with AML/KYC regulations to evade permanent bans and evade travel frauds.

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