Fraud Detection and Airline Security

Fraud Detection and Airline Security

Analysis of data can identify reservations that are not in fare and contract compliance and to profile suspicious booking and ticketing transactions.

Fraud also includes:

• Blocking of seat inventory
• Selling of tickets at prices lower than allowed [an estimated $60 to $70 million annual risk]
• Fictitious booking records
• Fraudulent lost baggage claims
• One Pass account redemption abuse.

Fraud Profiles

More than 100 fraud profiles have been identified in the airline industry - each run regularly against airline data. As potential fraud is detected, it is handed off to a case worker who conducts a formal investigation.

Continental was able to identify and prevent more than $15 million in one year alone.

Typical examples of fraud include booking agents making fake bookings, then selling tickets cheaply to friends and submission of counterfeited boarding passes and tickets to Loyalty Program service centers to have frequent flier miles attached. Unfortunately for the individual this placed him suddenly at the top of the 'Most Profitable Customers' list, alerting the system to possible fraud.

Flight Safety

Queries are run against flight manifest data to see if potential terrorists are on flights, before they are released to fly. Monitoring passenger reservation and flight manifests in real-time allows corporate security to search for names or patterns of activities that have been identified as being fraudulent. When matches are found, an email and page message is sent immediately to a contact at corporate security. This capability helps corporate security identify fraudulent activity as it occurs, and also enhances the gathering of critical intelligence through more timely interviews with suspects, victims, and witnesses.

Business Benefits

Continental was able to identify and prevent over $30 million in fraud over the last three years. This includes more than $7 million in cash collected.

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