Onsite: ARC Warns Agents of Fraud Proliferation

The Airline Reporting Corporation’s (ARC) first fraud prevention workshop was held during the Sabre TRAMS, Inc. Travel Marketing University conference in Las Vegas this week. In an interview with Dottie Hogan, ARC’s director of risk management, Travel Agent learned that fraud, including ticketing scams, has increased year over year and that travel agents remain liable.

ARC’s goal in sponsoring the workshop is to build travel agents' awareness of the growth of fraud and how agencies and agents can prevent it. Hogan sees a vital role for ARC and wants to spark a dialogue between ARC and agents on fraud issues. Host agencies are especially vulnerable, Hogan says. ARC works closely with law enforcement agencies, airlines and credit card companies on the fraud program.

The workshop attracted 20-plus agencies and home-based independent agents concerned with the proliferation of fraud and the impact of it on agency operations and profitability. One unnamed agency faced a $210,000 loss due to fraudsters, Hogan said.

“We are seeing year over year growth in frauds—primarily airline ticketing—and use of the Internet,” Hogan said. “Even small losses of $5,000 can directly and adversely impact a small or home-based agent’s bottom-line results. Agents are liable and must develop ways to minimize risks and counter fraud.”

Travel agents concerned with fraud prevention or who want to attend future fraud prevention workshops are invited to contact Hogan at [email protected] Additional information can be obtained online at www.arccorp.com.