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Ticketing Fraud: Trends and Tactics You Need to Know About

October 24, 2017

Let’s be honest. When it comes to buying tickets, it’s a very emotional purchase. In the moment, people are very excited to see their favorite team, band or artist. For legitimate fans, this is a very good thing.

For fraudsters, it’s even better. Here’s why.

The sensitivity of time

The email address is one of the first things you capture in a ticketing purchase. Why not use it as the basis of fraud risk assessment? This approach would allow you to incrementally improve your fraud hit rate. Why? Because fraud checks must occur before tickets are issued. And, in most situations, tickets are issued almost instantaneously. Performing risk assessment immediately will help cut down your fraud rates.

Watch out for first-party fraud (or OMG, Adele is coming to town!)

Here’s what first-party ticketing fraud looks like: My favorite artist is coming to town. So, of course I’m going to drop $800 on a ticket.

But later on, my rent and cell phone bills come due and I have second thoughts. After looking around online a bit, I find a loophole: I can claim someone else bought the ticket with my information.

So what do I do? Dispute the charges. Which for ticket sellers, equals a chargeback.

Investigation teams are precious resources

The bad news is that when fraud happens, ticket sellers have to expend precious resources investigating. With Emailage as a layer of prevention, you’re able to look at the name and other parameters associated with that email.

Ultimately, this will help your team determine likelihood that identity is who they say they are.

Time-sensitivity

With ticketing, the most high-risk period is short time before event. Whether the tickets are sold by a broker or the venue, there’s no time for review. These types of game-time decisions make real-time intelligence even more important. The vast amount of stolen personal information out there on the dark web makes this reality a clear and present threat.

Because once that order goes through and those tickets are in hand, there is absolutely no recourse. Only 6-10 days later do those chargebacks come rolling in, once the actual person who the tickets were charged to realizes that he or she is a fraud victim.

Because that’s the thing about online ticketing fraud…

Event tickets can easily be used or resold. All it takes is stolen personal and credit card information to buy $10k worth of tickets, then re-sell them to unsuspecting people. Even if the event is happening today. People will attend, have a great time, and think nothing is wrong. But that is only because the person whose information was stolen won’t realize until a few days later. The time-sensitivity of this type of fraud cannot be understated.

Using Emailage for decisioning

With stolen CC, fraudsters aren’t even necessarily using a legitimate email address. There’s too much risk of the actual account owner getting a receipt or a “thank you” email and wondering if something is up. Instead, fraudsters will use a different email address. Which is why using Emailage at the top of the waterfall can help you instantly determine that a transaction needs to be rejected. Either the email used will be brand new, or from a high risk domain or it has been associated with a previous fraud event.

We provide signals that will also flag you to push the order to manual review to help shorten time frame you have to catch that fraudster before tickets are issued. Because once they are issued, they are gone.