Travel fraud is becoming commonplace. Here's how to stay safe

Travel fraud is becoming more prevalent and it isn't limited to being hustled into paying more for your cab ride in a foreign country. Travellers are also being targeted during their trip planning phase.

The Mastercard Economics Institute's latest Travel Trends report shows fraud in the early stages of travel planning - such as while booking accommodation and tours - rose globally by more than 12 per cent year-on-year in 2024, and risks were up to 28 per cent higher during peak travel seasons.

The report shows fraudsters can exploit every stage of the travel experience, from fake listings to overcharged meals.

Mastercard chief economist Asia Pacific, David Mann, said fraud in the travel industry is a "broad and complex issue creeping in on a daily basis".

"It hurts consumers and businesses in various ways," Mr Mann said.

"Travel fraud is a growing concern, with the industry now ranking amongst the sectors that are most susceptible to fraud attacks."

Mr Mann said credit cards with built-in fraud protection and comprehensive travel insurance could help build confidence, especially for higher-value trips and first-time destinations.

Fraud in the travel industry can be anything from inflated taxi and restaurant charges to fake tour companies, and even fraudulent hotel or property listings.

The report showed travellers commonly encounter manipulated destination photos, fake confirmation links, and false offers, with fraudsters preying on the desire for discounted travel, particularly amid inflation and economic pressures.

A scammer might establish a fake tour company with irresistible offers for guided tours, excursions and exclusive experiences. The fraudulent operators may require prepayment and unusually low prices, and once paid, the tour might either never occur, or be drastically different to what was promised.

The largest share of travel fraud in Hong Kong is related to travel agencies and tour operators, while in Jakarta it's more focused on taxi and car rental. Phuket sees a high level of accommodation fraud while Dubai suffers from a lot of food service scams.

Fraudsters prey on consumers' emotions when it comes to travel which is an emotional purchasing decision, said Charles Sturt Australian Graduate School of Policing and Security senior lecturer in financial crime studies, Dr Milind Tiwari.

"It's coming out of positive emotions more often than not, and that's why our guards are pretty much down," Dr Tiwari told Explore.

Website clones are a common way fraudsters can target travellers. They create them using generative AI tools like Gemini and ChatGPT.

"They can clone a website or provide a phishing email or a message whereby a particular user whose guard is down might click on a link which might take them to a [similar] website and they might provide their financial information," Dr Tiwari said.

The same technology can be used to create fake receipts that scammers could use to convince travellers to pay more than their meal is worth at a restaurant, or clone a loved one's voice and leave a message saying they need money and passport details to book travel.

Mastercard offers advice for travellers to help reduce the risk of falling victim to a scam.

Book on reputable websites

When booking your flights, hotels or experiences abroad, interact only with reputable, established vendors. Always read the reviews and examine their website to ensure it is secure. Make sure the company you are booking with has a phone number or physical mailing address that you can verify before you proceed.

The three Cs for compromised cards