What Travel Agency Owners Can Do to Protect from Fraud

Also check out: 5 Fraud Red Flags for Travel Advisors to Watch Out For 

Fraud, unfortunately, is prevalent in the travel industry. Travel agency owners are especially vulnerable on several fronts, from the agents they hire or take on as ICs to the links they tap on and bookings they make. 

Scams on small businesses, including travel agencies, have become especially common over the past year and a half, so much so that Airlines Reporting Corporation (ARC)’s has made it the focus of its training programs for travel advisors. 

“Fraud can have severe consequences for agents, resulting in financial losses, reputational damage and a decline in customer trust. These impacts not only threaten the agency’s financial stability but can also erode long-standing client relationships,” said Cornelius Hattingh, director of accreditation, compliance, and revenue integrity at ARC. 

As such, agency owners are smart to invest the time and money it takes to protect their businesses. Below are some tips from the experts at ARC for doing just that. 

Complete background checks 

While background checks can be time consuming, they are important indicators of who you can trust. At the very least, asking for a valid driver’s license or other form of ID is critical. 

Be wary of anyone who only wants to use one form of communication. In-person meetings or video calls remain the best ways to be confident of who you’re doing business with. 

Monitor your agents’ bookings 

Vetting doesn’t stop once you hire an advisor or take on an IC. An agent who starts making lots of bookings right when they start may be a red flag, whether they are committing fraud themselves or unknowingly taking fraudulent bookings. 

Booking reports are a great tool for helping detect any unusual patterns in your travel advisors’ dealings. If anything suspicious comes up, it can be worth taking a closer look and asking some questions. 

Implement strong cyber security infrastructure 

This is a biggie. There has been an increase in incidents where fraudsters send phishing emails with links that lead to fake (but convincing) GDS pages. Advisors then entered their information, and the fraudster now has access to the real GDS. 

The ARC recommends the following to safeguard from these cyber threats: 

• Invest in strong security software 
• Implement Multi-Factor Authentication (MFA)  
• Use Secure payment methods  
• Limit access to sensitive information  
• Work with a trusted IT support provider  

There are also lots of technologies that travel companies can invest in that run risk checks for you. 

Agency owners get busy, of course, but due diligence when checking emails can save lots of money and headaches. When clicking links in emails, always check to make sure the sender’s email address is correct. 

Remember that fraudsters always try to strike during weekends and holidays when you’re not paying as much attention. 

Stay up to date with training for you and your employees 

Education is always key. There are plenty of webinars and training out there that provide the most recent information about industry fraud trends and what specifically to watch out for.  

Since amping up awareness about phishing, ARC has seen a reduction in the success of those scams, proving that education does work to keep travel agencies protected.