- Travel scams spike during peak seasons and commonly involve fake listings, overcharged meals, or fraudulent travel agency bookings.
- Fraud is especially high in car rentals, taxis, and food services, with cities like Cancun, Bangkok, and Los Angeles reporting the most incidents.
- Mastercard recommends using credit cards with fraud protection and being wary of deals that seem too good to be true during trip planning.
The travel industry is particularly susceptible to scams, but the Mastercard Economics Institute has you covered, helping travelers avoid the most common cons so they can hit the road with confidence.
Common scams can be as diverse as fake listings or even overcharged meals, according to a recently released report from Mastercard. And reports of fraud can be seasonal, having a tendency to increase more than 18 percent in popular summer destinations during warm periods and more than 28 percent in popular winter destinations during cold seasons.
Fraud connected to travel agencies and tour company bookings is particularly common, ranking four times higher than the average fraud rate across other industries. Scams related to taxi and car rental services also have relatively high levels of fraud, according to the report, but scams are less common when it comes to booking other modes of transportation like flights or trains.
“Whether it is scammers targeting unsuspecting travelers or deceptive activities within the booking process, the travel industry is a known target for fraudsters,” the company wrote in its report. “The Mastercard Economics Institute (MEI) believes understanding fraud trends is particularly important during periods of uncertain economic climates.”
The type of fraud and rate of scams can also vary from city to city. Scams around taxi and car rental services, for example, make up nearly 66 percent of complaints in Jakarta, but only account for 2 percent of the incidents reported in Barcelona or Hong Kong. Food service-related fraud is prominent in several cities in the United States, Riyadh, Manila, and Phuket. (Food services accounted for 63 percent of reported fraud causes in New York City and 75 percent of reported fraud cases in Los Angeles, for example).
The cities with the highest relative levels of reported scams were Cancun, Mexico; Hanoi, Vietnam; Dhaka, Bangladesh; and Bangkok, Thailand.
Even before taking off on a vacation, travelers should be aware of the potential for scams in the trip planning process. The report showed trip planning fraud rose more than 12 percent last year compared to 2023, including fake confirmation links, manipulated photographs, and more. Unusually low prices that seem too good to be true—especially in popular tourist destinations or during peak seasons—should be viewed with caution.
But there are ways travelers can protect themselves against potential fraud and scams when traveling both domestic and abroad, including by buying travel insurance or booking their trips with credit cards that have strong fraud protection.