In a normal year, the cost of fraud to airlines is estimated at $1 billion. This does not include the impact on reputation, nor the cost of preventing and managing fraud, or even fraud in other related areas, such as FFPs.
Defeating fraud requires a three-step approach. The first is to understand fraud, its logic and mechanisms. The second is to take serious actions based on these understandings. And the third step is to take a collaborative approach to responding.
IATA has published a new whitepaper, Fraud in the airline industry – why carriers need to think of themselves as crimefighters that aims to help airlines grasp the full extent of fraud, and why a community approach is most effective in combatting it.