Inflated taxi, food charges, fake tour firms: Travel fraud up 28% in summer

A 2025 Mastercard report flagged the travel industry as one of the most heavily targeted sectors for fraud, due to its high transaction volume and time-sensitive nature

Fraud in popular tourist destinations spikes up to 28% during peak seasons as per the Mastercard Economics Institute’s Travel Trend Report 2025. Common scams include inflated charges in restaurants and taxis, fake tour companies, and fraudulent property listings.  This is attributed to the industry's reliance on digital transactions and the high volume of bookings and cancellations, which create opportunities for fraudulent activities.

 

Key Points:

High Volume of Transactions: The travel sector processes a vast number of transactions daily, making it a prime target for fraudsters.

 

Digital Vulnerabilities: With the shift towards online bookings and digital payments, there are increased vulnerabilities that can be exploited if proper security measures aren't in place.

 

 

Common Fraud Tactics: These include the use of stolen credit card information, phishing scams targeting travelers, and fraudulent travel deals that lure consumers into providing personal and financial information.

 

To combat such fraud, Mastercard employs advanced fraud prevention technologies, including digital wallets and AI-driven systems, to protect travelers. This ensures that travelers can focus on their journeys without worrying about security threats.

 

Recommendations:

Enhanced Security Measures: Travel companies are advised to implement robust security protocols, including multi-factor authentication and real-time fraud detection systems.

 

Consumer Awareness: Educating consumers about common fraud schemes can help reduce the risk of falling victim to scams.

 

Most travel scams can be avoided with some smart steps and awareness. 

Fake Booking Websites

What happens: Fraudulent websites mimic legitimate platforms like Booking.com or Airbnb and trick users into paying for non-existent stays or flights.

 

In 2023, Europol cracked down on a criminal network operating over 250 fake travel websites scamming users across Europe. 

How to avoid:

 

• Always check the URL for spelling errors (e.g., “bookings.com” instead of “booking.com”).
• Book directly through verified apps or platforms.
• Look for HTTPS in the address bar and read recent user reviews.

 

2. Phishing Emails and Texts

What happens: Scammers pose as airlines or hotel chains, urging you to click on a fake link to “confirm” bookings or “reschedule” flights.

 

How to avoid:

• Don’t click on suspicious links or attachments.
• Contact the travel provider directly through official websites.
• Use email security tools that flag potential phishing.
• If an email claims your flight is cancelled but you never booked one with that airline, it’s a red flag.

 

3. Too-Good-to-Be-True Deals

What happens: Social media ads or WhatsApp forwards promoting “Rs 999 Maldives trips” often lead to payment fraud or identity theft.

 

How to avoid:

• Be skeptical of deals with massive discounts and time pressure.
• Research the company. If there’s no physical address or valid contact number, it’s likely a scam.
• Use payment methods with buyer protection (e.g., credit cards or UPI apps with refund options).

 

4. Public Wi-Fi Traps at Airports

What happens: Hackers set up fake free Wi-Fi networks at airports and hotels to intercept your login and financial details.

 

How to avoid:

• Avoid logging into banking apps or entering card details on public Wi-Fi.
• Use a VPN if you need to browse on shared networks.
• Stick to mobile data for sensitive transactions.

 

Travel smarter:

Use Virtual Cards

Banks like HDFC, ICICI, and platforms like Niyo Global Card offer virtual debit cards with controlled limits. Great for one-time use.

 

 Enable Transaction Alerts

Get instant SMS/email alerts for every transaction — even the smallest ones.

 

 Monitor Your Statements

Check your credit/debit card statements regularly, especially during and after a trip.

 

Avoid oversharing online

Don't post your boarding pass or hotel room details on social media. Scammers can harvest that data.

 

Use reputable travel insurance

A comprehensive policy often includes fraud protection. Verify that clause before purchase.