Airline fraud costs global aviation industry over $600 mn

New Delhi: According to a recent report by Deloitte and the International Association of Airline Internal Auditors (IAAIA), airline fraud is costing the global aviation industry over $600 million a year. The report further states that fraud has increased five-fold since the last in-depth study of the industry was done six years ago.
The biggest losses come from credit card fraud and more than a third of airlines have been hit by it, which accounts for around 60% of all external fraud-related losses. The credit card fraud alone is costing airlines an average of $1 million a year. Looking at this, it comes as no surprise that the airline industry in India is also waking up to this harsh reality.
Last year, Kingfisher Airlines complained to the Economic Offences Wing (EOW) of an online ticket booking fraud through credit cards saying the airline was duped of around Rs 17 crore. The EOW suspected a nationwide organised racket behind the fraud. The airlines are being more cautious this year and Jet Airways recently announced a tie-up with CyberSource, a leading provider of electronic payment and risk management solutions to implement an automated online risk (fraud) management solution.
21/10/07 Dheeraj Tiwari/Economic Times

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Categories: General Aviation Oct 2007