19th March 2024
It is imperative for travel companies to comprehend challenges in the evolving cyber risk and regulatory landscape, and remain proactive when it comes to shielding data and preventing fraudulent activities, be it for transactions or loyalty currency.
Fraud specialists must be spot on with their risk assessment strategy, evaluate what to protect in sync with their business model, protect and also make the most of data being collected (all the data available on a user, device, or transaction), audit and monitor for fraud threats, and accordingly rely on fraud tools as a tactic, explained Brian Davis, Head of Fraud at Dodgeball in a webinar by LSA last week.
“Tools are part of a tactic that is being worked out to mitigate the risk identified,” said Davis.
The role of data in identifying patterns that indicate fraud is of paramount importance.
As for being ahead of fraudsters, anti-fraud approaches include rule-based systems, anomaly detection (identifying unusual patterns within data flows) and fraud detection systems based on machine learning models. The core objective, depending upon the nature of the business, would entail verifying the authenticity of an identity, user and device behaviour, evaluate financial transactions and protect IT infrastructure and data.
Fraud Risk Orchestration
David also highlighted the significance of fraud / risk orchestration.
According to Dodgeball, as fraud specialists focus on stopping fraud before it happens, predicting fraud, report on fraud trends and keep systems secure, they can also now work out a “central layer to connect tools, data, and workflows”. Fraud orchestration provides a mechanism to deploy new protections as fast as fraudsters evolve. Orchestration paves the way to test narrow fraud hypotheses, and deploy targeted mitigations, and at the same time, revenue maximisation isn’t compromised.
For fraud orchestration, entities have to consider integration of fraud tools and data sources, tracking and analysing user data, and deploying rules and logic.
What to expect in this arena going forward?
Hear from experts at the upcoming #ATPS2024 in London (22-23 May):
https://www.aiconnects.us/atps-2024/
By Ritesh Gupta, Ai Events
