International Fraud Gangs Targeting Australian Travellers: A Rising Threat on Flights to Bali and Beyond

A recent report by Riskified has highlighted an alarming increase in travel fraud targeting Australian travellers, particularly on flights from Australia to Bali. The report reveals a significant rise in fraudulent flight tickets, with certain routes identified as high-risk for scams perpetrated by international fraud gangs.

Flights from Australia to Bali: 2.5x More Likely to Be Fraudulent

According to the Riskified report, flights departing from Australia to Indonesia are 2.5 times more likely to involve fraudulent tickets compared to the average. This stark statistic places Bali, a top holiday destination for Australians, as a hotspot for ticket fraud. Additionally, the United States and the United Arab Emirates follow closely behind, with fraud risks 2x and 15% above the average, respectively.

These fraudulent activities are growing in sophistication, posing a serious challenge not only to travel providers but also to unsuspecting travellers. Fraudulent practices can range from using stolen credit card details to purchase tickets, which are then resold to innocent passengers at attractive, yet misleading prices, often through online forums or even the dark web.

The Dark Side of Bargain Tickets

"Travellers are often lured by offers that seem too good to be true," explains Nicholas Kirtley, ANZ Country Manager at Riskified. "These fraudsters target consumers with enticing ticket prices, which eventually lead to chaos at the airport when the tickets turn out to be fraudulent."

This fraudulent activity can also lead to credit card theft when customers unknowingly pay for tickets purchased with stolen card details. By the time a victim realizes the scam, it’s often too late, leaving them stranded and with compromised financial information.

Organised Gangs and the Global Impact

The rise in travel fraud is not a result of isolated incidents but rather part of a growing, organised criminal network. Indonesia, China, Russia, and even Europe are increasingly being identified as sources of these well-coordinated fraud gangs. These groups exploit the complexities of global travel, where varying locations and currencies make it difficult to detect fraud during ticket purchases.

“Unlike other sectors, where mismatched credit card and IP addresses are red flags, the global nature of travel makes it harder for providers to differentiate between legitimate customers and fraudsters,” says Kirtley. The travel industry is particularly vulnerable to fraud due to its global scope, and criminals are using this to their advantage to target Australian travellers.

A Growing Problem in E-Commerce

Riskified’s report also sheds light on the broader context of e-commerce fraud, specifically the increasing vulnerability of the travel industry. When compared to other types of online purchases, flights and hotel bookings exhibit a substantially higher risk of fraud. This makes the travel sector the highest risk category in global e-commerce. Fraudsters now see airline reward points as a valuable target, using account takeover (ATO) schemes to access frequent flyer accounts and redeem points for flights, upgrades, or even sell them on the black market.

The rise of fake airline websites and phishing emails has added another layer of complexity. Fraudsters trick customers into sharing personal credentials or redeeming non-existent services, which then results in the accumulation of fake loyalty points.

Protecting Yourself from Travel Fraud

As the fraud landscape becomes increasingly sophisticated, travellers need to remain vigilant. Here are some steps to protect yourself:

• Book directly with trusted airlines or agencies to avoid third-party scams.
• Check for any irregularities such as overly low ticket prices or unfamiliar websites before making a purchase.
• Use secure payment methods such as credit cards with fraud protection or secure payment gateways.
• Monitor your credit card activity regularly to detect unauthorized transactions.
• Be cautious about offers on the dark web or online forums, especially those involving discounted travel or loyalty points.

A Wake-Up Call for the Australian Travel Industry

As the report indicates, the Australian travel sector faces growing challenges in combating fraud, especially on high-risk routes like Australia to Bali. The need for industry-wide solutions and increased awareness among both travel providers and consumers is urgent. Fraudsters are evolving their tactics, and the industry must keep pace to ensure that Australians can continue to travel safely without falling victim to these international scams.

With the travel fraud epidemic on the rise, both tourists and travel providers must remain vigilant. Being informed about the types of fraud affecting the travel industry and adopting preventative measures can help mitigate the risks and ensure a safe and enjoyable journey for all.