Vid Sukumar, general manager EMEA at Signifyd, says as demand rises airlines must embrace digital transformation to shore up their defences against bad actors 

After a turbulent few years, the aviation industry is finally seeing steady demand, with new data showing that over 56% of UK adults are planning to take to the skies this year for a summer holiday and a growing number of people are now choosing to fly to concerts.

But while this shift presents positive news for profits, it also poses growing threats and opportunities for bad actors to exploit.

From fraudulently booked tickets to phishing, data breaches and chargebacks, several tactics are being used to take advantage of weak spots in airlines’ operations, making it crucial for airlines to level up their defences across the customer journey.

The industry has become a preferred target due to its heavy reliance on digital sales channels, the high value of airline tickets and the volume of sensitive data handled.

In fact, research shows that 60% of travel-themed emails sent between December 2022 and January 2023 were detected as phishing scams that “abused the names of well-known airlines to gain access to users’ sensitive information and travel rewards or loyalty accounts”.

As most consumers don’t check their account balances frequently, fraudsters’ actions can easily go unnoticed for months.

What’s more, when it’s estimated that 80% of fraudulently obtained tickets are departing within 24 hours of the booking, outdated processes and mechanisms used by airlines don’t allow them to take action promptly.

As a result, the booking may sit in the queue to be manually reviewed for fraud without a decision before the flight leaves. Being susceptible to these multiple layers of fraud undoubtedly has a hard-hitting impact on the bottom line.

All of this boils down to the fact that many airlines lag behind other industries when it comes to digital transformation.

While it hasn’t always been the case, with airlines being some of the first businesses to move sales online in the 1990s, their operations are now failing to keep up in the age of artificial intelligence (AI).

Beyond missing out on operational efficiencies and stronger passenger experiences, this has undoubtedly left them vulnerable to attacks.

 Automation is the fuel for growth

When the need to build resilience against fraud and play catch-up with digital transformation is growing, optimising manual processes should be one of the highest priorities for airlines. Behind the scenes, airlines screen each transaction in an attempt to identify irregularities and potential fraud.

The sheer volume of transactions and data demands a much more efficient, accurate and streamlined approach, so that airlines can identify fraud as early as the checkout phase and unlock more profitable processes and better customer experiences.

By automating the review process, airlines can effectively weed out fraudulent transactions as they happen without declining legitimate ones.

Patterns are detected with machine learning models that analyse transaction data and assess the risks, all while making the review process seamless for customers.

In saving time wading through transactions manually, it also means that employees’ time can be freed up to focus on other areas of the business, whether that’s enhancing customer service or supporting more strategic business decisions.

Putting the AI in airlines

When fraud costs the airline industry billions in losses each year, it’s clear that it’s critical to embed tools that both take away the risk of false positives and flatten chargeback rates.

But this fundamentally requires a mindset shift, moving from a reactive mode of operating to a proactive approach.

By embracing a digital-first future and evolving technologies like AI and behaviour analytics, organisations can move on from merely surviving in an increasingly sophisticated threat landscape to thriving as a profitable business.

But rather than needing to overhaul infrastructure and risk disruption, AI should be viewed as a valuable assistant that facilitates work and provides intelligence.

Choosing specific use cases that take the strain off staff can offer quick results while helping to secure the business’s future.

For example, in the case of automated fraud prevention tools, airlines will be better positioned to meet new and evolving legislation across geographies – even though 3D Secure protection is not viable for most, they can still ensure they are effectively managing payments, avoiding rejecting good bookings and minimising fraud.

AI has been tried, tested and trusted across industries, so it’s time for the aviation sector to embrace its benefits to maintain integrity and support a safer, more secure ecosystem.