Summer vacation is something many people eagerly look forward to throughout the year, but it also provides an excellent opportunity for scammers to deceive unsuspecting individuals. Experts warn that scammers may use fake travel websites or advertisements offering low-cost vacation deals to swindle hard-earned money saved for a holiday.
According to the Better Business Bureau (BBB), in recent years, there have been over 30,000 complaints filed by American travelers regarding such travel scams.
For many Americans, summer vacation might be one of the most expensive planned expenditures of the year. Dan Cusick, Fraud and Claims Director at Wells Fargo Bank in Charlotte, North Carolina, cautioned that this creates a prime opportunity for scammers to strike.
“Criminals look for key seasons like summer and exploit your excitement to ‘pickpocket’ your money in different ways,” Cusick told Fox News Digital.
Cusick and another expert outlined five major travel scams and how to deal with them for Fox News Digital.
Cusick advised consumers to be wary of “phishing” attacks, where false information is used or websites are disguised as legitimate, trustworthy, or well-known sources of travel.
“These travel websites may look legitimate, offering attractive deals on flights, hotels, and vacation packages. However, when you make a payment, your money may go straight into the scammer’s pocket,” he said.
Additionally, exercise caution with third-party booking agents. Cusick noted scammers may claim to manage travel bookings for you and request payment for the trip. Unfortunately, when you arrive at the airport, you may discover the flight arranged by the scammer doesn’t exist, or upon checking into the hotel, find out there was no reservation.
The Federal Trade Commission also warned that some scammers fabricate rental listings that aren’t available or don’t even exist.
Cusick emphasized that if a travel website prompts you to “book now” and demands an unusual payment method, it is likely a scam.
“If a so-called travel site requires payment in the form of gift cards or wire transfers, it is definitely a red flag signaling you are dealing with a scammer,” he said.
“A good rule of thumb is if a travel deal seems too good to be true and costs significantly less than competitors, it is a warning sign that it could be a scam,” Cusick stated.
Scammers exploit platforms like Airbnb and VRBO, posting properties that don’t belong to them or don’t even exist.
“They may pressure you to make an immediate deposit,” he said, leaving you without money and no rental property.
Cusick mentioned signs indicating a vacation rental scam:
– When a potential rental listing on popular platforms requires payment via an unprotected platform or with unusual payment methods like cryptocurrency, gift cards, or wire transfer.
– Pressure from the supposed “landlord” to pay upfront to secure the property.
– Demands for wired funds to guarantee a booking.
The Federal Trade Commission highlighted that you may come across ads offering “free” vacations online or receive emails, phone calls, or texts from scammers claiming you’ve won a free trip, even if you never entered any contest. If you respond, you’ll be informed you need to pay fees and taxes before receiving the prize. Legitimate companies do not require payment for free prizes.
“They may request direct wire transfers or ask for account information to collect fees, but you won’t receive any prizes in the end,” Cusick warned, cautioning that scammers may claim the free holiday is a “limited-time offer” to pressure you into acting quickly without time for consideration and evaluation.
Sally French, a travel expert at NerdWallet in San Francisco, cautioned to “do your research if you haven’t heard of the travel company before”.
“Look up online reviews, check if their website is legitimate, and see if they are registered with travel industry associations.”
She also suggested avoiding booking a trip if you haven’t read actual traveler reviews of the company’s products or services.
Use common sense to determine if a deal sounds too good to be true. Additionally, Wells Fargo Bank shared some other tips:
– Know or trust the recipient of funds: Do not wire money to individuals you don’t know or can’t confirm the legitimacy of.
– Avoid clicking on links in unsolicited emails, texts, or online ads. This could be a form of “phishing” or a way for scammers to install malicious software on your device or redirect you to a scam website.
Exercise caution when scanning QR codes for payments. While these codes can offer convenience for legitimate businesses or sellers, be aware scammers may use them to redirect you to malicious or fake websites to steal your payment information.
If you become a victim of a travel scam or scheme, taking immediate action should help mitigate losses.
French from NerdWallet suggested reporting any stolen bank or credit cards to your bank or issuer first. They can cancel the card before scammers cause further damage. She also advised having a backup credit card while traveling. If you have to cancel one card, you can rely on the other to complete the rest of your journey.
Moreover, continue monitoring your bank statements, especially in the days following your vacation.
The Federal Trade Commission warned not to sign or make a payment without understanding transaction terms. Get a copy of the cancellation and refund policy before making any payment. If you can’t obtain these details, do not proceed with the transaction.