ARC sees increase in ticketing fraud

By Johanna Jainchill

There has been a marked increase in the issuance of unauthorized airline tickets within the past few months, according to ARC.

ARC said that from August to November, 82 incidents of this type were reported, making up 73% of all cases reported so far in 2011. In 2010, there were 18 such incidents reported to ARC in total.

The aggregate face value of the unauthorized tickets in 2011 is more than $1 million, ARC said, with the largest single incident valued at over $77,000.

“ARC has banded together with other industry leaders to educate agents on how to identify these illegal emails and avoid navigating to fraudulent links,” Chuck Fischer, ARC's director of operations integrity, said in a statement.

ARC said that it believes the increase in unauthorized tickets is directly related to an upsurge in phishing emails (emails that attempt to gain information such as login IDs, usernames, passwords, and credit card details) aimed at travel agents and spear-phishing emails aimed at travel agency employees and independent contractors.

In these cases, the phishing emails are designed to appear as though they are being sent from GDSs. The phishing email entices the reader to obtain additional information or reports by clicking on a URL that takes them to a fraudulent GDS website where the agent logs in and provides the necessary credentials for the fraudster to access the genuine GDS website to book and issue unauthorized airline tickets.

ARC is encouraging travel agents and corporate travel departments to become familiar with potential phishing emails and to frequently check the Fraud Alerts and Incidents page on ARC’s website.


Follow Johanna Jainchill on Twitter @jjainchilltw.

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