Riskified, a fraud prevention solution provider, announced a strategic partnership with the International Air Transport Association (IATA). Under the arrangement, IATA will integrate and offer Riskified’s Chargeback Guarantee to IATA member airlines that use the IATA Financial Gateway (IFG). Member airlines will be able to quickly and easily activate Riskified’s fraud solution consistently throughout all their distribution channels from e-commerce to agency sales including new distribution capability (NDC). Riskified enables airlines to approve ticket orders they may otherwise have declined for fear of fraud, all while not requiring any additional investment in development resources.

According to an announcement, airlines face an uphill battle against fraudsters. Tickets are a high-value digital good, which makes them attractive to fraudsters. Order decisions must be made nearly instantly and with limited information. If airlines make the wrong decision, they risk substantial revenue loss to fraudulent chargebacks and their associated fees. Conversely, a fear of fraud can lead to overly conservative order review, resulting in legitimate travelers being declined and leaving revenue on the table. Riskified’s platform allows airlines to approve legitimate customers and avoid the costs of fraud. By analyzing ticket transactions and comparing them with billions of prior online transactions, the Riskified Chargeback Guarantee provides airlines with a decision to “approve” or “decline” each order. Airlines receive payment from Riskified for all approved orders even if they later turn out to be fraudulent. Riskified’s automated decisions are instantaneous and scale to match airlines’ rapid changes in volume.

Muhammad Albakri, IATA’s senior vice president, customer, financial and digital services, said the IATA Financial Gateway provides a consolidated and cost-efficient solution for airlines and travel suppliers to optimize their different sales payment processes through a single global connection. “We are excited that Riskified is bringing added value for IFG users,” he said, “ by helping to identify and reduce fraudulent activity and protect airline revenues, particularly during these difficult times.”