- A new study shows that travel is one of the most susceptible sectors to fraud.
- Popular tourist destinations are among the prime targets for scammers, thanks to large crowds and the high rate of purchases.
- Travelers should pack a healthy dose of skepticism and avoid any too-good-to-be-true offers to help avoid fraudulent schemes.
A common fear among travelers when they visit a new destination is whether they might fall victim to scams, such as pickpocketing or being ripped off by a tour company that seemed legit. It turns out those fears are not entirely unwarranted, as a new study shows that the travel industry is a huge target for scammers.
The Mastercard Economic Institute examined aggregated and anonymized transaction data from Mastercard and found that “the travel industry ranks among the sectors most susceptible to fraud attacks.” Mastercard’s data shows that fraud reports jump by 18 percent at popular destinations during peak summer travel and by more than 28 percent at cold-weather destinations during the winter travel season. “Popular tourist destinations, particularly those that attract large crowds, are prime targets for fraudsters due to the high concentration of visitors and the increased volume of transactions,” the report says.
Among the destinations where tourists report higher levels of travel-related fraud are Cancun, Mexico; Hanoi, Vietnam; Dhaka, Bangladesh; and Bangkok, according to the report. As for the destinations that tend to have the lowest rates of travel fraud, they include San Francisco, Dublin, Seoul, Budapest, and Edinburgh tend to be among the cities with the lowest rates of travel fraud. “This is a relative comparison, not a ranking of cities with the highest or lowest fraud rates,” the report states.
The danger can also begin well before a traveler leaves home, with fraud associated with early stage trip planning increasing 12 percent in 2024 compared to the previous year. During the trip booking process, travelers “commonly encounter manipulated destination photos, fake confirmation links, and false offers, with fraudsters preying on the desire for discounted travel amid inflation and economic pressures,” the report says.
The most common types of travel scams are fake travel agencies and sightseeing tours, with fraud in this sector more than four times higher than the global average, the report shows. These types of scams are even more common in certain destinations, such as Hong Kong, where fraudulent travel agencies and tour operators make up 70 percent of the city’s travel-related scams. These fraudsters are also common in Barcelona and Delhi, India, where they account for 64 percent of the travel scams in both of those cities, as well as Singapore (49 percent) and Cancun (48 percent).
Red flags travelers should watch out for include tour operators that offer enticingly low prices or require prepayment. “Once paid, the tour may either never occur or be drastically different from what was promised,” according to the report.
Taxi and car rental scams also occur frequently, especially in Jakarta, Indonesia, where those schemes comprise 66 percent of the city’s travel fraud, as well as Bangkok (48 percent), and London (34 percent).
Fraudulent accommodation bookings are common in some destinations, including Phuket, Thailand, where they account for 39 percent of travel scams, and Antalya, Turkey, where they make up 35 percent of fraud aimed at tourists. “Fraudsters may exploit vacation rental platforms or travel websites by creating fake listings, leading tourists to book non-existent properties or ones that vastly differ from the advertised descriptions,” the report explains.
To help avoid these frustrating and disappointing situations, travelers should plan to bring along a healthy dose of skepticism on their next trip—and think twice before paying for any offer that sounds too good to be true.
