Ai Video: Curbing loyalty fraud with machine learning

12th December, 2019

Airlines are looking at ways to curb illegitimate access to a member's loyalty account and resulting imbalance in a member’s spending or reward activity owing to hacking.

Considering the fact that demand for stolen loyalty currency among the fraudsters or in marketplaces on the dark web is on the rise, the role of machine learning in monitoring high-risk behaviour at account access, purchase and redemption of points/ miles is coming to the fore.

Important aspects that are being explored:

• How to leverage data from the entire loyalty platform ecosystem?

• How to define an apt fraud score limit that points out unusual behaviour?

• How to prepare to identify unrecognised anomalies in transactions?

• How to cut down on the rate of false-positive cases that require manual reviews?

Binay Warrier, Head of Business Development, Loyalty and CRM at IBS Software, spoke about the role of machine learning in keeping a vigil on loyalty fraud.

 

Editorials

  • Ai Editorial: Establishing a proactive data protection mechanism +

    17th January, 2020 Ai Editorial: Data security and privacy-related initiatives are now a priority, and travel merchants have to embrace proactive and appropriate tools for the entire organization, writes Ai’s Read More
  • Ai Video: Banking on exclusivity and experiential benefits for loyalty +

    14th January, 2020 Exclusive rewards, personalized access, a distinguished experience... such initiatives, as indicated by studies, are driving customer loyalty. It is vital for airlines to focus on the human Read More
  • Ai Editorial: PSD2 SCA 2020 - how to go about it as a travel merchant? +

    10th January, 2020 Ai Editorial: The PSD2 Strong Customer Authentication (SCA) migration completion deadline for online payments in Europe continues to be a weighty issue, with concerns about the preparedness Read More
  • 1
  • 2
  • 3
  • 4
  • 5