Posing as a rich individual booking for a friend or as a fake travel agent, the fraudsters use compromised credit card numbers to make bookings at attractive hotels and pay for them in advance. These bookings are sold on to unsuspecting travellers who pay directly to the fraudsters.
It results in a financial loss to your business when the genuine cardholder raises a chargeback, and a potential loss in reputation when the unwitting travellers arrive at your hotel.
To avoid becoming a victim of this kind of fraud, make sure your guests present the card they paid with and if they can’t, refund the original reservation and ask for payment by a different means. Consider only accepting pre-paid reservations via an eCommerce account with Strong Customer Authentication (SCA), such as EMV 3DS, for added protection. Transactions made through known booking platforms may be excluded to avoid friction in the purchasing process.