Digital advancement has created convenience for clients and companies, and this digital shift has attracted the attention of tourists toward the travel industry. As now it is easy to book the airline and hotel tickets, this can be done from the comfort of the home. But this convenience also has some opposing sides, as travelers face fraudulent activities due to this digital shift. In 2022, in Australia, 74.5 thousand incidents of phishing were reported. This ratio is increasing daily; these scams have generated the importance of KYC verification. These solutions verify all the new onboarding clients and measure their risk rate.
Scammers steal the data of tourists who book online hotels and flights; they decode the clients' accounts and take their identity.
The following is the list of most frequent scams:
Operators show that they belong to a travel company and offer attractive deals to the clients. Tourists think they are the representatives of the authorized company, so they book their trip with them. When the deal is done and payment is transferred, later on, the company turns off its number.
Nowadays, most people book their hotels digitally by viewing their websites online, and tourists deal with them. These companies do not exist in reality; when travelers go to that location, they come to know that there is no hotel, and they are scammed.
The scams include fake taxi drivers and passengers booking rides online and paying their payments. But the taxi did not arrive on time because it was a scam.
The following are the benefits of the e-IDV for the travel industry:
KYC verification onboards only verified clients and fraudulent activities can be controlled through it. Most of the scams are done by fake identities; hackers steal the credentials of the client account and then use it for illicit purposes. Some people do not even know that their performance is hacked, and by using other people, minors usually become the victim of such scams.
These solutions help to detect travel fraud, as only verified person affiliate with the company; the ongoing monitoring feature enables the company to check the source of income of their users, and this process is done to ensure that later on, they do not get involved in any fraudulent activity.
Travel fraud can be minimized if the risk rate of the user is known, and consistent monitoring aids the company in scoring its users. The relationship with the customers is built according to their risk rate, and companies have to decide how much risk they can bear.
AML (Anti Money Laundering) and KYC are mandatory for companies, as they safeguard the interests of the clients and the company. Travel frauds are reduced when only verified clients become part of the business.
The companies that comply with the AML regulations have their penalties reduced through it, as they follow the latest rules and regulations implied by the government.
If the company is a complaint against cyber crimes, the brand image is maintained as clients prefer companies that keep their information safe.
KYC verification can reduce travel fraud, as only verified clients can book airline tickets and hotels. This process has created convenience for the tourists, as they do not have to go to the office for booking. This registration has made traveling more convenient; the ease of booking has attracted more tourists.
Companies can build the trust of teh users by providing them with a user-friendly interface; the verification is straightforward, and even an uneducated person can be verified. There is no need to read long and time-consuming user manuals; a single click performs the entire verification. Customers usually get fed up with the long authentications and prefer businesses that save time and capital.
e-IDV fraud can control travel verification, as these registrations mitigate fraudulent activities. These solutions provide services in every industrial sector, and their wonders can not be denied. Now, tourists can safely book their flights and perform online transactions; their credentials are safe. The security of the user’s account is crucial, while online transactions are at the edge of cybercrime. Companies can build a competitive advantage by providing these services to their clients. Satisfied users recommend the company to their family and friends; in this way, the revenue of the business is enhanced. KYC verification is a lifetime investment for the companies, and its profits are promising.