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.