Finding an apt place for fraud team to deliver tangible results -
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Finding an apt place for fraud team to deliver tangible results

Ai Editorial

Airlines must look at a prudent way to optimize the role of their fraud department, reconsidering the internal alignment for the same.

26th April, 2021

Fraud prevention or keeping a vigil on fraudulent activities, be it for a login-in, redemption of miles or an illegitimate transaction, isn’t something that needs to be handled in isolation. Organizations need to re-think their approach and re-consider how the fraud department can make the most of their available resources.

“Airlines need to start thinking of their fraud and payment flow as part of their revenue optimization solutions and not as a back-office reconciliation function,” Stuart Barwood, Director Global Airline Strategy at Forter told Ai’s Ritesh Gupta.

In the current climate, airlines need to reduce internal silos and work together across diverse functions.

In case of fraud management airlines should consider it an extension of revenue management (RM) and e-commerce and ultimately better results could come from having it report into commercial.

Barwood mentioned that the current approach of having “revenue generation” report to commercial and “revenue loss prevention” report to finance creates a situation where no one function has control over both sides of the conversion metric.

“By bringing it into Revenue Optimisation and therefore under commercial, airlines are likely to be better placed to maximize revenue and to ensure that e-commerce strategies can be deployed effectively,” he said.


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