Loyalty frauds result in billions of dollars in losses, hurting airlines that are reeling under financial stress due to the impact of COVID. Fighting such frauds has been difficult as different airlines are at different maturity levels in fraud prevention systems Often, the significant effort and cost involved deters many from taking any meaningful initiative to prevent such frauds.
Besides, in an alliance, all it takes is one weak airline to cause damage to all members. An alliance, however, has a broader view than individual airlines of all frequent flyer program transactions. This comprehensive data can provide insights into fraud patterns and help put in measures to combat them. A central solution at the alliance hub will provide immediate benefits to all airlines with minimal costs as that will be shared between members.