Travel scams that can hurt your credit or finances

Vacationing has been on the rise for decades and is undoubtedly here to stay. A 2024 USA Today travel survey reported that the average American takes 2.5 vacations per year. Additionally, 53% of Americans have used or plan to use their travel credit cards or travel rewards points to help pay for these vacations. The era of frequent traveling is here — but with rewards, there are certain risks to be mindful of as well.

Unfortunately, some criminals are determined to put a wrench in your good time by exploiting your travel plans. Scams are constantly changing and adapting, so as travel planning becomes quicker and cleverer, so do fraudsters.

If you fall victim to one of these scams, not only could your vacation be ruined, but your credit and finances can also be impacted. Here are the most common travel scams to spot and avoid today:

Bogus travel booking websites

When planning your vacation, you may encounter spoofed travel booking websites. They can be similar in appearance to companies you’d typically do business with, such as airlines, hotels, rental cars and even TSA PreCheck.

These bogus sites may pop up at the top of your search engine when you type them in, says Alex Hamerstone, cyber expert and advisory solutions director at TrustedSec, an information security consulting organization.

“It’s easy to duplicate a website and manipulate search results,” says Hamerstone. “The ads you see for them online can be just spoofs, though. They copy the real sites very well and get you to book your plans with it, but they’re just taking your personal and credit card data.”

Too-good-to-be-true vacation rental listings

Imagine you’re looking for a vacation rental home and find the perfect place. According to the listing, it has everything you’re seeking, so you request more information, which the agent or owner sends. Perfect! You put a deposit down with your credit card.

Then you show up and knock on the door for the keys, and instead of the agent or owner, it’s the surprised and legitimate occupant.

Fake vacation rental listings are all too real. “This is easy for the scammers to do,” says Hamerstone. “They take a real estate listing that has a photo, then copy it to create a fake rental listing. We get many stories of people showing up at a house, and the people who live there are shocked when they open the door.”

The scammers will take the money you put down as a deposit but typically make additional charges. To further ruin your vacation, there may not be a hotel or vacation rental available by that point.

Robocalls impersonating travel companies

Another way scammers get you to give up your information is by making robocalls that impersonate airlines, hotels and travel services. They often use auto dialer software to alert you about a flight delay or to provide updated information about your arrangements. Out of the millions of people they contact, at least some will have a trip planned on that airline.

If you press the number to speak with a representative, you will likely end up giving your travel plans to a stranger.

All too often, says Hamerstone, you’ll eventually be presented with an offer to upgrade to Business or First Class for a small fee. Because they don’t have your credit card on file, you’ll be asked to read it to them over the phone. Once the crook has that information, they can go shopping. You may not find out until you’ve returned from your trip or when you’re out having a great time but suddenly find you can’t make a purchase with your card because it’s been maxed out.

Unreal travel insurance

With all the flight delays and travel hiccups that can occur, you may want to consider a travel insurance policy. Among other features, it can provide you with protection against lost or stolen luggage, pay for a hotel room and offer a stipend for food, should you need it.

Beware, though; if you search for travel insurance online, you may find a familiar insurance company that is nothing more than a duplicate site. It will enable you to make the purchase, but you’ll never get the protection because the policy doesn’t exist.

What’s genius about this scam is that many people do not end up using their travel insurance policies. The $50 or so you spend may give you peace of mind even if you don’t use it, so you’ll never know it was fake. When you do need it and think you’re covered, though, you’ll probably be very upset.

The good news is that many credit cards have embedded travel insurance, so you don’t need to pay extra for a policy. To ensure your travel insurance is legit, consider purchasing from a well-known organization or broker and look to see if the agent is licensed. If you’re ever in doubt, ask questions before purchasing anything.

Act fast if you fall prey to a travel scam

“If any of these things happen to you, you’re the victim of a crime,” says Hamerstone. “Don’t be embarrassed. Scammers are really good at what they do. It’s their full-time job, and they know what words to use. They exploit a sense of urgency, and they’re so convincing.”

In addition to letting the real company know that scammers are impersonating them (Hamerstone suggests contacting a company through social media for the fastest response), report the incident to the Federal Trade Commission.

If the scammer made unauthorized transactions with your credit card, call your credit card company immediately and report the fraud.

Also, contact one of the three major credit bureaus — TransUnion, Experian or Equifax — and add a fraud alert to your file (the bureau you contact will notify the others). The alert will act as a red flag to potential lenders and creditors. You can also freeze your credit so that no one can request a credit limit increase or open a new credit product in your name.

The bottom line

It’s always a good idea to use a travel credit card for your vacation, both for the rewards and the consumer protection.

Do not respond to messages that come to you from a company, whether they are phone calls, texts or emails. Type the actual website address for the company you are doing business with and either use the chat function or call their customer service line directly.

And if you’re really uneasy, turn to a professional. A certified travel adviser will organize your vacation and safely make travel arrangements for you.