The threats are arising partly because fraudsters are finding
the security of face-to-face chip-and-pin card retail transactions
too hard to breach and are migrating instead to industries that
sell high-value products over the phone and internet.
Apacs, a finance industry body, estimates that "card not
present" frauds against the travel industry rose from £27m in
the UK in 2007 to £29m last year, making it the third most
defrauded of the industries that it monitors.
Airlines and travel agent groups said the sector is a target as
it tries to boost flagging sales but lacks the safeguard of
chip-and-pin transaction security.
Ukash believes that consumers can be safeguarded from fraud when
it comes to paying for flights online by using e-cash instead of
their credit cards. Ukash has already signed an agreement with UATP
to make it possible for consumers to pay for flights over the
Internet using cash.
Mark Chirnside, CEO, Ukash explained, "The rise in credit card
fraud against the travel industry demonstrates the value of
alternative payment solutions like Ukash. We are working with UATP
to offer Ukash to airlines around the world so that carriers have
the option to accept risk-free payments from consumers wanting to
protect their financial details."