Top 5 frauds in the travel and tourism industry

Top 5 frauds in the travel and tourism industry

May 30, 2022, 2:07 p.m.
3 minute read

You will be shocked to know how many travelers and travel agencies are scammed every year.

Over the past few months, online travel bookings have seen a huge increase.

This massive transaction on digital travel and tourism platforms has also increased the risk of customers being duped by travel-related fraud, hampering their experience.

One of the world’s leading fraud detection and prevention companies, mFilterIt, shared their research on top frauds and how travelers can avoid falling prey to these fraudulent activities online.

Chargeback Fraud and Stolen Credit Cards

A fraudulent attack begins with obtaining consumers’ credit card numbers and identifying information.

Airline revenue can be decimated due to bonus/loyalty abuse and bookings made with stolen credit card information can result in chargebacks.

Continue to monitor credit card payments, eliminating paper trails of credit card numbers and report lost or stolen cards immediately to prevent this type of fraud.

This type of fraud occurs when a scammer gains access to a person’s or travel agent’s account information through data breaches or phishing, and then impersonates a customer/agent legitimate travel agent to conduct illegal transactions.

Using the 3-D Secure inline pin, simple two-factor authentication helps avoid ATOs.

When authorized employees log into a travel agency’s booking platform, they receive a verification request on their phone.

Fake travel websites and app cloning

Many travelers have been scammed by websites selling counterfeit airline tickets, hotel rooms, vacation packages and vehicle rentals.

Popular apps are cloned and placed in third-party play stores.

The malware takes control of the device that downloads it.

To avoid this, book directly on the hotel’s official website.

If you’re concerned about the legitimacy of the website, call the company to verify.

Breach attempts can target any travel organization dealing with important customer data.

This can damage the company’s reputation by exposing it to legal action.

Bot attacks on travel websites are increasingly advanced in an effort to gain access to sensitive customer information.

Travelers should keep abreast of payment card industry data and security standards and should dispose of digital data carefully.

Bait and change airline offers

One of the most common scams among online offshore travel services operates in part by using pop-up advertisements that claim to save you a large sum on a trip.

When travelers visit the website, they see lower costs than other online travel agencies. However, they forget to disclose the wide range of fees.

Always ask yourself if the offer seems too good to be true.

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