Many research reports suggest that airlines and hotels are among the top industries that suffer huge losses because of e-commerce frauds. The most popular fraud is the use of stolen credit cards to make bookings.

Many companies have to pay a significant amount to cover customers’ losses due to such counterfeiters. Sometimes these frauds are planned by the customers and are called friendly frauds. Customers make the bookings and then claim that the card was stolen and ask for repayments. Machine learning algorithms can create detailed profilings of customer behavior analysis and help in preventing illegal transactions.

With multiple touchpoints, customers can book tickets or rooms from websites and mobile applications. This raises concerns about phishing frauds. By keeping a track of such misleading bookings and customers complaints, such frauds can be detected and impeded before they can cost any big amount.