Cyber Criminals Target Airline Industry at Alarming Rate

Written on October 2, 2010 – 9:25 pm | by Jasmine Haller

Let’s face it. Flying is not always a pleasant experience — long delays, new charges for checking bags and being stranded on grounded flights are just some of the normal gripes — and as a result, the airline industry often does not get a lot of public sympathy. Well, cyber criminals are taking their animosity out on the airline industry at an alarming rate.

The bad guys are using stolen credit cards to buy tickets and re-sell them, and this tactic is on the rise. USA Today reported that a Deloitte UK survey taken in 2009 found that 48% of more than 50 responding U.S. and global carriers said online fraud had increased in the past year, and each airline’s losses averaged more than $2.4 million annually.

According to the article, other fraud experts say the amount is far greater. An industry poll released last year by CyberSource, an electronic payment security-management company, and aviation conference firm Airline Information estimated total losses at $1.4 billion in 2008.

A real life example of this fraud happening was July 2010 indictments of 38 people allegedly involved in a nationwide ring that used stolen credit and debit card information to buy airline tickets. The tickets were resold and led to estimated losses of more than $20 million for several U.S. airlines, banks, card holders and other businesses.

The threat is real and the airlines are vulnerable. Come on now…not many of us a fans of airlines (though flying Southwest can be sometimes fun), but this is taking it to the next level and it is costing the airlines. And, guess what will happen? The losses will be passed onto us in the form of more expensive tickets, or more fees for checking bags. So, let’s hope this issue can be addressed.

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