These Destinations Have The Highest Levels Of Travel Fraud

Plus, common scams that travellers should look out for.

Key Points

A new study shows that travel is one of the most susceptible sectors to fraud. Famous tourist destinations are among the prime targets for scammers, thanks to large crowds and the high rate of purchases.

Travellers should pack a healthy dose of scepticism and avoid any too good to be valid offers to help prevent fraudulent schemes.

A common fear among travellers when they visit a new destination is whether they might fall victim to scams such as pickpocketing or being ripped off by a tour company that seemed legit. Those fears are not entirely unwarranted, as a new study shows that the travel industry is a massive target for scammers. The Mastercard Economic Institute examined aggregated and anonymized transaction data from mastercard and found that the travel industry ranks among the sectors most susceptible to fraud attacks.” mastercards data shows that fraud reports jump by 18 per cent at popular destinations during peak summer travel and by more than 28 per cent at cold-weather destinations during the winter travel season. “Popular tourist destinations, particularly those that attract large crowds, are prime targets for fraudsters due to the high concentration of visitors and the increased volume of transactions,” the report says.

Among the destinations where tourists report higher levels of travel-related fraud are Cancun, Mexico, Hanoi, Vietnam, Dhaka, Bangladesh, and Bangkok, according to the report. As for the destinations that tend to have the lowest rates of travel fraud, they include San Francisco, Dublin, Seoul, Budapest, and Edinburgh, which tend to be among the cities with the lowest rates of travel fraud. “This is a relative comparison, not a ranking of cities with the highest or lowest fraud rates,” the report states.

The danger can also begin well before the traveller leaves home, with fraud associated with early-stage trip planning increasing 12 per cent in 2024 compared to the previous year. During the trip booking process, travelelrs “commonly encounter manipulated destination photos, fake confirmation links and false offers with fraudsters preying on the desire for discounted travel amid inflation and economic pressures,” the report says.

The most common types of travel scams are fake travel agencies and sightseeing tours, with fraud in this sector more than four times higher than the global average, the report shows. These types of scams are even more common in specific destinations, such as Hong Kong, where fraudulent travel agencies and tour operators make up 70 per cent of the city’s travel-related scams. These fraudsters are also common in Barcelona and Delhi, India, where they account for 64 per cent of the travel scams in both cities, as well as Singapore (49 per cent) and Cancun (48 per cent).

Red flags travellers should watch out for include tour operators that offer enticingly low prices or require prepayment. “Once paid, the tour may either never occur or be drastically different from what was promised,” according to the report.

Taxi and car rental scams also occur frequently, especially in Jakarta, Indonesia, where these schemes comprise 66 per cent of the city’s travel fraud, as well as in Bangkok and London. Fraudulent accommodation bookings are common, especially in Jakarta, Indonesia, where these schemes comprise 66 per cent of the city’s travel fraud, as well as in Bangkok and London.

Fraudulent accommodation bookings are common in some destinations, including Phuket, Thailand, where they account for 39 per cent of travel scams and Antalya, Turkey, where they make up 35 per cent of fraud aimed at tourists.

To help avoid these frustrating and disappointing situations, travellers should plan to bring along a healthy dose of scepticism on their next trip and think twice before paying for any offer that sounds too good to be true.

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