Fraud Prevention Training

1. Fraud Prevention Training Tips and Ideas on how to Plan & Run Fraud Prevention Training Gisela Hofmann Retired Lufthansa Fraud Prevention Manager

2. There is no need to question the necessity of fraud prevention training, so I am not giving you any arguments as to why such training has to be done, but I will give you some hints from my fraud prevention training experience.To start with such training:- Collect samples and profiles of fraud cases- Collect some “success stories” - Include losses due to mistakes and system problems- Have facts and figures about the volume and value of losses due to fraud, error, manipulation, loopholes in systems and working mistakes

3. Modules for Fraud Prevention Training Split the whole theme in different modules. This will allow you to update only the parts which are necessary. Such modules can be taken for the training as they are needed and for the specific work areas. Such training modules can be used for the training in a course, but can also be modified to a PC based training, to allow staff to update their knowledge while they are at work. To have the training stored on the PC in different modules will allow staff to have access to those modules specific to their area.

4. Basic Module The basic module can be general information about fraud prevention, revenue integrity and the authorities of the fraud prevention department. It should contain: Facts and figures of all losses Structure of the department Contact names and how to reach the department Passenger handling

5. Strategy Graphic (Source – Boston Consulting)

6. Possible Headline Revenue Integrity is a business philosophy: If we do not prevent mistakes & fraud, we protect them !

7. Check-in Module Paper Tickets – Be on Alert if paper tickets are presented, e.g. what are the profiles of a neutral ticket ARC & BSP (which are NOT in circulation anymore). Electronic Tickets What to do if the ticket can not be retrieved from the system, but the passenger has an itinerary receipt in hands – is this receipt a valid or fake one, where to check, whom to ask Discrepancies in booking class and class on ticket, e.g. PNR is booked with high value economy class code, but ticket is issued with the lowest fare code Mileage upgrades manipulation, e.g. Customer is checked in in Business Class because of mileage upgrade but claims at the departure gate that his upgrade was „forgotten“ in order to get a First Class seat without payment

8. Ticketing - Module Ticketing – more detailed than for check-in -Is the paper ticket still valid and can be accepted – how to detect invalid paper tickets -Is the itinerary receipt valid and genuine if the electronic ticket is not accessible in the system -Is the credit card valid for payment -Reissue of tickets – does the fare allow such changes -Do not get impressed of status of passenger if passenger requests more than what the fare/ticket permits -Clarify – there is a very small number of status customers who see it as a kind of “sport” to get more than they paid for (e.g. more stops than permitted on restricted fares)

9. Example of a fake ITR

10. Baggage & Lost and Found Fraud Module Baggage Fraud and Lost and Found - Manipulations with baggage damage (same damage will be claimed again and again) • Enforcing „lost baggage“ by confusing check-in staff or requesting that baggage is only checked to an intermediate station and claiming later at final destination that bags are „lost“ • Fraudulent baggage claim (e.g.two people travelling together, one takes the bag from the baggage claim and the other declares it as „lost“) This module might be in different versions, one for check-in and one for lost and found staff

11. Call Center Module Payment Fraud • Done by passengers • Done by fake internet agents, advising passengers to request confirmation by the airline that ticket is booked and ok. Fraudulent bookings • e.g. requesting bookings in a high value class, but the ticket does not allow such booking (e.g. „I will purchase the ticket at the airport“)

12. Passenger Handling Module Depending on the company policy and the case, there might be different rules in the handling of passengers, e.g. with fraudulent tickets or false baggage claims. - where to find the rules of passenger handling in the system - who should handle the case, regular front staff or only supervisor - Who needs to be informed about the case

13. Examples for staff • It is important – and staff will remember the training much better if you: • Show examples of fraudulent/fake documents which they can look at and examine • Share some exciting success stories

14. Sample of internet agent – Real Agent I

15. Fake Internet Agent Page

16. Questions and Answers • Plan enough time for questions and answers • Give staff the time to tell their problems • Give them the security that you and the company are backing them up in case of fraud handling • Do not restrict them to fraud cases, but allow them also to talk about problems with procedures and systems, as this might be a reason for manipulation or fraud • If you can not answer a question, note it down and clarify it later to give feedback to the staff – they will know then that you take them serious. Important!! – Listen to that what staff is telling you. Sometimes an “unimportant” remark was the key to detect severe manipulations and fraud.

17. Management Module Last but not least, but also very important is such “training” to inform management and also station managements about the problems the front staff is confronted with. This module can point out the importance of fraud prevention and give them facts and figures about losses due to fraud, mistakes, errors, loopholes in the system and lack of knowledge of staff.

18. THANK YOU