The travel industry is one of the industries that has always had a huge target on its back, all thanks to the unstoppable rise in the number of online bookings, mobile apps, instant payments and cross-border transactions. Because of this, cybercriminals have found new ways to exploit vulnerabilities.
For travel brands, whether they operate as OTAs, hotels, airlines, ride-sharing services or booking platforms, ensuring payment security is now a major part of delivering a safe, seamless customer experience.
This article explores the most common fraud threats in travel payments and shares practical and actionable strategies for reducing risk while maintaining convenience for users.
Understanding the unique fraud challenges in travel payments
Unlike other industries, there are some characteristics that make travel payments more susceptible to fraud.
High value transactions
Travelling is not cheap, and it often comes with a hefty price tag. Sure, there may be some good deals here and there, but travelling can easily leave a dent on your wallet when you consider other expenses: accommodations, flights, tours packages and more.
Fraudsters see these as high-reward opportunities because they can resell flights or hotel nights on the black market or enjoy the service before the chargeback occurs.
Last-minute purchases
Many fraudulent bookings come just at the nick of time. Travel companies feel pressure to approve payments for these last-minute travel purchases quickly, giving fraudsters a tight window to exploit.
That’s why these time-sensitive transactions often bypass deeper verification checks, allowing bad actors to take advantage of reduced scrutiny. Fraudsters also know that merchants hesitate to decline bookings when the risk of losing revenue is high, especially during peak travel seasons.
Cross-border complexity
International cards, foreign currencies and varied regulations increase the difficulty of distinguishing legitimate transactions from fraudulent ones. Fraudsters often hide behind foreign IPs or proxy networks, making location-based checks less reliable. Also, inconsistent fraud patterns across regions make it harder for global travel platforms to apply blanket regulations without accidentally blocking legitimate customers.
Major fraud types affecting travel payments
Understanding the most frequent fraud types helps businesses design more targeted controls to prevent them from occurring.
- Card-Not-Present (CNP) Fraud. Most travel bookings occur online, without physical cards. Criminals then have an easier time using stolen card details.
- Account Takeover. Travel accounts often store passports, personal details and loyalty points, which is exactly the type of data criminals want. Once inside, they can book trips or drain points.
- Friendly Fraud (Chargeback Fraud). Some customers intentionally dispute legitimate charges after they’ve used the service. For example, payments can still be disputed after a completed hotel stay.
- Synthetic Identity Fraud. Fraudsters combine real and fake data to create new digital identities. They then use these to book travel or open loyalty accounts.
Strategies to reduce fraud risk in travel payments
Below are some excellent practices that your modern travel brand can implement to protect both revenue and customer trust.
- Strengthen identity verification
Requiring MFA, specifically for account logins, loyalty point transfers and stored payment details can help strengthen identity verification. Making use of biometrics, SMS codes and authenticator apps also significantly reduce the risk of account takeovers by adding an extra verification cushion that makes it challenging for fraudsters to bypass.
- Secure the customer journey from start to finish
Bots are increasingly used to test stolen card numbers or automate fraudulent bookings, so bot-mitigation systems are essential for distinguishing genuine users from automated attacks.
All sensitive payment data should also be encrypted in transit and at rest to comply with PCI-DSS and prevent interception. Loyalty programs require equal protection, as stolen points can be easily converted into travel services. Strong credentials, login attempt limits and transaction monitoring help preserve account integrity.
- Work with secure payment providers
A strong payment provider assists with filtering high-risk transactions, tokenizing card data and offering liability-shifting mechanisms that reduce merchant exposure.
Looking at how other industries manage regulated transactions, such as the systems used by verified online service and gaming partners, can provide useful benchmarks for maintaining high security standards.
When selecting payment vendors, it’s best to choose those with multi-layered fraud controls, ACH safeguards and advanced analytics to ensure seamless and safe payments for travellers across both domestic and international markets.
- Build a frictionless but secure user experience
Travel customers expect smooth, fast transactions, so offering secure payment alternatives such as verified e-wallets or protected bank transfers helps reduce abandonment while maintaining safety.
Risk-based authentication allows trusted customers to pass through checkout with fewer steps, adding friction only when the system detects heightened risk signals.
Final thoughts
The travel industry is transitioning to everything digital and that comes with a host of new issues, with payment fraud being one of the more serious ones. That makes strong security measures essential.
High-value bookings, last-minute purchases and cross-border transactions all create opportunities for fraudsters, so prevention must be built into every step of the customer journey.
By following these strategies, travel brands can reduce risk while preserving customer trust. Investing in these measures ensures travellers enjoy an overall safer, more reliable booking experience.
Author Bio:
Edrian Blasquino is a college instructor turned wordsmith with a passion for both teaching and writing. With years of experience in higher education he brings a unique perspective to his writing, crafting engaging and informative content on a variety of topics. Now he’s excited to explore his creative side and pursue content writing as a hobby.
Photo by Andrea Piacquadio from Pexels
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