Stadiums and venues across the globe are filling up this summer.
From the upcoming 2024 Summer Olympics in Paris to Taylor Swift’s ongoing and record-breaking Eras tour and beyond, there is, quite simply, a lot to do and see for the world’s consumers.
But as events attract millions of would-go attendees, scammers are capitalizing on the heightened demand — and they are using new, sophisticated tools to do so.
“One big trend we are seeing right now is the integration of artificial intelligence for bad and the use of deepfakes,” Carolyn Homberger, president of the Americas for Featurespace, told PYMNTS.
In a new era where digital tickets have replaced traditional paper ones, creating new opportunities for fraud, these deepfakes can trick consumers and sellers alike, making it harder to distinguish between genuine and fake tickets.
“Historically, with scalping, you’d just get a fake piece of paper,” Homberger said. “But with the ticketing landscape becoming so digitized, the online and eCommerce experience is now front and center in ticketing scams.”
The shift to online platforms has made it more challenging to ensure the legitimacy of event access, as evidenced by the widespread use of social media as another of the key trends exacerbating ticketing scams.
As Homberger noted, social media platforms create a false sense of security, where users think they are interacting with friends or acquaintances. This relaxed atmosphere makes individuals more susceptible to scams. Fraudsters exploit this trust, defrauding people on both ends of the transaction — those selling tickets and those buying them.
But the situation isn’t hopeless, and the fraudsters haven’t won just yet.
Read also: 62% of FIs Grapple With a Rise in Fraudulent Transactions
The scale of the global events-ticketing economy is staggering. Using high-profile events as examples, Homberger provided a glimpse into the magnitude of the landscape that scammers and fraudsters are targeting. For instance, over 2 million tickets were sold for EURO 2024, and 9 million out of 10 million tickets for the Summer Olympics are already in circulation.
These high-demand events are prime targets for scammers because the sheer volume of transactions and the excitement surrounding such events create a fertile ground for fraudulent activities. The resale market further compounds the problem, with the potential for multiple resales of a single ticket.
Making matters more complicated, fraudsters tend to use various tactics to deceive ticket buyers and sellers.
Fake websites, social media scams, unusual payment methods, and too-good-to-be-true deals are all red flags to watch out for, Homberger said.
Scammers commonly create fake websites that mimic legitimate ticketing platforms, luring unsuspecting buyers into making purchases. They also use social media platforms to post fake ticket listings, often in groups or pages that seem trustworthy.
At the same time, requests for payment via gift cards or by real-time payment services like Zelle, as well as other non-traceable methods should raise more red flags. These payment methods are often irreversible, making it difficult for victims to recover their money.
It remains crucial for eventgoers to make sure that the tickets they are buying pass the smell test. If a deal seems too good to be true, it probably is. Scammers often entice buyers with offers that are below market value.
See also: Featurespace Unveils AI ‘Large Transaction Model’ to Combat Fraud
To avoid falling victim to ticketing scams, consumers should follow several best practices. Homberger emphasized the importance of buying tickets through reputable resale agents or brokers. Ensuring that the website or platform is legitimate is crucial. Using secure payment methods like credit cards or PayPal can also provide an additional layer of protection.
She also stressed that artificial intelligence (AI) is not just a tool for fraudsters; it is also a weapon against fraud. By understanding what constitutes “normal” behavior for a consumer, AI can more effectively identify and prevent fraud.
Featurespace uses behavioral analytics to create profiles based on consumers’ typical behavior, enabling the detection of anomalies that may indicate fraudulent activity. One example of AI’s effectiveness is Featurespace’s recent proof of concept with Pay.UK. Using simple transaction data, without requiring personally identifiable information (PII), the companies were able to uncover hundreds of millions of pounds worth of previously missed fraud, demonstrating the potential of AI to combat fraud without compromising consumer privacy.
Ultimately, financial institutions themselves play a crucial role in protecting consumers. By upgrading their fraud detection systems from traditional rules-based models to more sophisticated behavioral analytics, banks can better safeguard their customers.
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