How and why scammers target travelers

From fake listings to overcharged meals, fraudsters can take advantage of every aspect of the travel experience. Fortunately, technology is helping travelers protect themselves.

Fraud in popular tourist destinations can increase by up to 28% during peak seasons.  Digital wallets and AI-driven fraud prevention tools are being used to safeguard travelers.

The travel industry is a complex issue that affects both consumers and businesses in various ways. Scammers target unsuspecting travelers and engage in deceptive activities during the booking process.

The Mastercard Economics Institute (MEI) emphasizes the importance of understanding fraud trends, especially during uncertain economic times. MEI’s analysis of aggregated transaction data suggests that the travel industry is highly vulnerable to fraud attacks.

Fraud rates vary across different sectors of the travel industry, with agencies and tours experiencing significantly higher levels compared to the global average. While fraud is less common in transportation bookings like flights or trains, it remains a concern in services like taxis and car rentals.

Companies and travelers can take steps to protect themselves from fraud in the travel industry.

Fraud during trip planning

Travelers are at risk of fraud well before they leave home. An analysis of Mastercard’s aggregated and anonymized transaction data reveals that in 2024, the fraud rate in sectors associated with the early stages of trip planning increased more than 12% compared to the previous year.

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.

Fraud increases with transaction volume

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. For example, scammers establish fake tour companies, luring tourists with irresistible offers for guided tours, excursions, or exclusive experiences.

These fraudulent operators may require prepayment or offer unusually low prices to entice travelers. Once paid, the tour may either never occur or be drastically different from what was promised.

In the accommodation sector, 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.

Planning a trip can be exciting, but it’s important that travelers take steps to ensure their security throughout their journey.