Gone are the days when you need to go to an office to register for a destination tour or plan a vacation trip to your favorite place. The evolution in technology has made it possible to buy tickets online and manage your travel plans from the comfort of your home. Where online services have brought ease, they have also created some challenges. Travel agencies with illicit motives out there are ready to steal customer identities and bank on huge profits through scams. From fake hotel bookings to canceled flights, cybercriminals get the better of the travel industry.
Passport scanner and other traditional means of verifying tourist identity have become old and are easily outwitted by fraudsters. According to Finextra, the travel Industry scams account for a staggering 10.2 percent of the annual GDP and the number is increasing at an exponential rate. Below are listed the top five scams in the travel industry which are expected in 2021:
Fake Vacation Companies
There exist vacation clubs in the travel industry that offer travel packages to customers at an incredibly cheap rate. But, as soon as a customer pays the fees and registers with them, they find it unsatisfactory. Christopher Elliott, who is a consumer advocate, wrote a book called Scammed which talks about how to become a capable and successful customer in the world of scams.
In his interview with SmarterTravel, he said, "I've never gone over an authentic travel club. My recommendation is to run, don't walk." In order to avoid these imposter travel agencies out there, tourists should be well aware of the kind of illegitimate services they provide.
Bogus Driving Permits
According to the Federal Trade Commission (FTC), there are many individuals in the industry with a fake International Driving Permit (IDP). Most of the countries accept tourists based on the information provided on their IDP. In the US, there exist only two legal authorities responsible for the issuance of licenses, which are the American Automobile Touring Alliance (AATA) and the American Automobile Association (AAA). The internet is full of fraudulent and synthetic IDP sellers which charge consumers with a good deal of money, only to get them behind the bars.
Scams in Rental Property
Rental property websites are a sweet spot for scammers to advertise their alluring offers to trick people. Oftentimes, they ask for a wire transfer to themselves or the property owner, which in both cases is a potential trap. As soon as the victim makes a payment, the scammers are nowhere to be seen. People looking to rent a house or any other type of property should confirm the authenticity of the platform and the person they are negotiating with.
False Travel Agents
Another travel agency scam is when cybercriminals set up imposter websites and impersonate a travel agent. If the tour operator or managing company does not have reviews available on the website, don’t hesitate to decline a big payment. Investigating the site’s URL is a good bet when it comes to checking for a false platform. To avoid bogus travel agents, individuals should consider any unusual numbers, spelling mistakes, or even unexpected symbols in the website address.
Payment Card Fraud
Many cases of payment card fraud are the famous “verification call” gambit. This type of travel scam typically involves a phone call to the victim an hour or two before they check-in, asking them to verify their credit card details. Behind the phone is a scammer attempting to steal the information and use it to gain financial profit. Hotels and authentic travel agencies never ask for such personal information over a call or text message. Since these details are confidential, they are easy to spot by being aware of incoming fraudulent calls.
To sum it up, travel scams are one to watch out for in 2021. Bogus rental property sites, fake travel agents, credit card frauds, and false travel agencies contribute to fraud and scams in the travel industry.