Flying In The Face Of Danger? Tackle Frequent Flyer Program ATO

News flash: miles are not just distance traveled! In fact, they are a hot commodity on the black market: thousands of points from frequent flyer programs, such as Emirates Skywards and Delta SkyMiles, are being sold. Miles are so highly sought after that a staggering 72% of airline loyalty programs, including American Airlines and United Airlines, have been attacked. Frequent flyer programs are huge moneymakers- these programs actually generate massive revenues, contributing to as much as half of all airline profits. That is, if you do not have to suffer from the cost of fraud. Since you operate by a small profit margin, the loss from a single fraudulent booking can be painful. To get the most out of these programs, it is paramount to protect your frequent travelers from account takeovers (ATO).

Despite being highly targeted, these flyer programs lack security measures. Most rely on a password and PIN number, and only a third deploy two-factor authentication (2FA). We all know that passwords are feeble and PIN numbers can be easily bypassed, but the truth is even 2FA is inadequate in securing loyalty accounts. Let’s evaluate the true effectiveness of 2FA in addressing ATO in your frequent flyer program, and whether you should consider other fraud management solutions.