IATA defines fraud as "any action, which deprives a carrier of the revenue to which it is entitled, undertaken without the carrier's knowledge or consent". The cost of fraud to the industry is estimated to be in the region of 1.5 billion USD every year.
The most obvious target to fraud is money, whether it is in the form of currency or a valuable security that can be converted into currency, e.g. an airline ticket. In order to protect corporate assets, airlines require reliable accounting and audit systems linked to a corporate fraud prevention programme which has a clear corporate policy addressing such matters as the prosecution of those who are involved in various forms of misappropriation of the airlines' funds.
Advice to the Public
Airline tickets - look for bargains, but take care!
Everyone wants the best possible bargain when they buy an airline ticket. The airlines know this and have built their reputations and their growth on it. In real terms, average fares have fallen by 30 percent during the past 15 years.
The number of travel products on offer and the flexibility of options available have never been greater. But, a business generating more than USD 450 billion in revenue will inevitably attract criminals who steal or forge tickets for sale to consumers. And so a search for the ultimate bargain can make consumers victims of airlines' attempts to prevent crime.
Recent cases have involved consumers in loss of their money, the need to buy replacement tickets and uncomfortable questioning from both airlines and police who are attempting to discover the source of the crime.
People can take some easy precautions to prevent such situations:
Buy tickets direct from an airline or from an agent approved by IATA. Agents approved by IATA carry the universally-recognised IATA logo. They have the airlines' seal of approval in terms of suitability, security of premises and professional competence.
If you buy a ticket from some other source, before parting with any money, find out which airline or airlines are going to provide the transport and the number of the ticket. Telephone those airlines, quoting the number of the ticket and the price being asked. These simple precautions can save a lot of grief later on.