COVID-19 restrictions have had a devastating impact on the travel industry. As for fraud, according to the Chicago-based data aggregator and credit bureau, there was a 47% rise in attacks on the travel and leisure sector in Q2 2021. Do you need more info concerning the travel industry fraud? Do you need help with a high risk merchant account?
Fraud Rates Skyrocketing
Global fraud rates for the travel and leisure industry increased by almost 156% in 2020. Specifically, in the U.S., the fraud rate grew by 136.6% for the travel and leisure sector.
A recent survey among more than 100 participants across the airline, hotel and travel industries, shows that airlines lost about 1.2% of their revenue because of payment fraud. This is according to the data provided by the International Air Transport Association (IATA).
2/3 of the merchants in the airline and travel space respond to 76% of chargeback requests. This is vividly higher as compared to the registered 43% response rate regarding all merchant verticals reported this year based on the Chargeback Field Report.
Fraud in the Travel Sector: High Risk Merchant Account
COVID-19 has caused a devastating economic impact on the travel industry. The latter is still losing revenue and facing an unprecedented rise in chargebacks, which is causing some of the world’s travel providers to collapse.
In such situation, the majority of insurers anticipate a rise in the levels of fraudulent claims as travel increases. They expect growth in the specific types of scams caused by COVID-19. Be aware that the global market for fraud detection and prevention has accounted for $12.37 billion this year.
In 2020, that number was $18.24 billion and is forecast to make up $40.8 billion by 2026. The growth is valued to be at a CAGR of 18.17% during 2021-2026. With all this being said, it’s of immense importance to find an expert merchant processor to work with so you can properly protect your online transactions from fraud.
Thanks to a reputable payment processing company providing the most sophisticated and lowest cost merchant services, including a high risk merchant account, you can stay afloat in these challenging times and move your business forward with success.
Travel Fraud Is On the Rise
In 2020, travel and transportation fraud rates accounted for almost 30% higher as compared to what was registered a year before, as Sift global network reported. It’s critical to use the most secure payment processing solutions to avoid fraud as much as possible these days.
Author Bio: Blair Thomas has been a music producer, bouncer, screenwriter and for over a decade has been the proud Co-Founder of eMerchantBroker, the highest rated high risk merchant account processor in the country. He has climbed in the Himalayas, survived a hurricane, and lived on a gold mine in the Yukon. He currently calls Thailand his home with a lifetime collection of his favorite books.