Understand what Electronic Identity Verification (EIDV) is and how it can be beneficial for the travel industry in combating travel fraud and other illegal activities.
The travel industry is related to the traveling of people internationally or domestically. This travel may be for business, social, or recreational purposes. It can be via air, land, or water-based modes of travel. This industry is closely related to some other industries, such as the tourism, hotel, and transport industries.
According to a report published by the Statista Research Department on December 18, 2023, travel and tourism’s direct contribution to the global gross domestic product (GDP) was approximately 7.7 trillion U.S. dollars in 2022. It was 7.6 percent of the total global GDP. This shows that this is one of the biggest and fastest-growing industries in the world.
Like all other industries, the travel industry is also facing scams in this digital landscape. This blog will explain the different travel frauds faced by the travel industry and how electronic identity verification (EIDV) can be helpful to safeguard it against these scams.
Travel Scams
Technology advancements similar to those in other spheres of life have revolutionized the travel industry. Customers want digital transactions to avoid physical hassles, and the travel sector is providing them with all the online facilities, from ticket booking to payment methods. Here, the imposters are taking advantage and adopting smarter and more sophisticated ways of cheating. The following are the most common travel scams reported by all the countries:
1. Identity Theft
Identity theft happens when someone steals another person’s identity and makes purchases by using it. This can be done by using another’s identity card number, bank account details, or credit card number. Fraudsters use digital check-in offers to plan their criminal activities. These offers are designed to make travelers free from the hassles of over-the-counter bookings and on-counter payments. Identity theft is also very common in airports, where fraudsters come with fake identities and passports.
2. Payment Methods
Payments through stolen debit and credit cards and fake bookings are very common in this sector. Attempts to avail of fake chargebacks, returns, and discounts may result in heavy costs to the industry or reputational loss.
3. Fake Travel Companies
Travelers receive messages from travel companies that appear legal and leave applications for the booking or reply to fake companies’ emails. They leave their important information there. This allows fraudsters to steal their credentials and use the fake identities of legitimate customers for their illegal activities.
EIDV Solution
The Electronic Identity Verification (EIDV) solution is a completely automated digital system that verifies the identities of individuals remotely by authenticating their ID’s from both public and private database sources. They use several criteria, such as name, gender, address, and date of birth, to match individuals with the available database. These digital solutions provide fast, accurate, and paperless methods for businesses to verify customers’ identities.
EIDV For Travel Industry
In this realm of digital transformation, when every business is utilizing internet facilities, the travel industry is also providing online access to their customers for the confirmation of tickets and bookings. EIDV provides a quick, easy, and reliable way for the traveling industry to verify the identities of their customers. An efficient EIDV solution can provide the following benefits to the travel industry:
1. Global Access To The Customers
Traditionally, the only way to book was to visit the available airline office in your city and inquire about the availability of seats. Now, with the help of the EIDV digital solution, travel agencies can access their customers globally. Customers can confirm their tickets and book their desired seats online while sitting in any corner of the world.
2. Enhanced Customer Satisfaction
The EIDV solution verifies customers’ identities within a few minutes, making the whole process frictionless, paperless, and without any physical effort. It makes online payment methods more authentic and secure, which in turn increases customer satisfaction and builds their trust.
3. Increased Security
The use of advanced technologies, such as artificial intelligence (AI) and machine learning (ML), in electronic verification increases the accuracy and efficiency of the verification process. It not only provides authentic people to the firm but also protects it from fraudsters, hence increasing the effectiveness of the security system.
4. Fraud Prevention
The EIDV process matches the customer data with the electronic database and finds high-risk profiles. This helps in screening out scammers and protects firms against identity theft, illegal transactions, and other criminal activities.
5. Better Reputation
By implementing an EIDV solution, travel agencies provide their customers with a better onboarding experience, and they feel secure while carrying out online transactions. This increases customer loyalty, and they prefer companies working with digital solutions.
In Conclusion
The travel industry is moving towards digitization and needs an EIDV solution for the identity verification of their customers. An effective EIDV solution can help travel agencies provide a hassle free onboarding experience for their customers . It provides a secure environment for both companies and customers for online transactions. It protects them from all kinds of travel fraud and enhances their credibility.
