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After a lifetime of saving and dreaming, Americans aged 65 and older are more than twice as likely as adults under 30 to travel to five or more other countries [1]. If you or a loved one is embarking on the journey to becoming a globetrotter, properly investigating travel offers and watching out for scams can save time, money, and aggravation.
Types of Travel Scams
Airfare, hotel room and car rental prices often skyrocket during busy travel periods. Scammers lie in wait with various forms of travel fraud to take advantage of deal-seekers. Protecting yourself starts with awareness. Here are some of the most common travel frauds:
- Timeshare Scam. A timeshare spreads the cost of a vacation property across many owners. Each owner gets to use the property on a set number of days each year. The idea of owning a vacation property, even partial ownership, can sound appealing. With these types of frauds, the property often doesn’t fit the description in an advertisement. A timeshare scam might contain hidden fees or fake free-night offers. If you change your mind, these scams often make it close to impossible to cancel your timeshare contract.
- Vacation Rental Scam. According to the FBI’s Internet Crime Complaint Center (IC3), nearly 12,000 people fell victim to real estate scams in 2021, with losses totaling over $350 million [2]. In this type of travel fraud, scammers duplicate postings from legitimate real estate or home-sharing sites, replacing the contact information with their own. They typically deny credit card payments, requiring full payment up front or a deposit sent through wire transfer, often to a foreign address. Another red flag is that they can’t show you the property.
- Free Trip Scam. Scammers often offer something, like a free cruise or vacation, for nothing in return. But there’s always a price to pay. These types of scams often come in the form of robocalls, emails or letters claiming you’ve won something. You can tell it’s fraudulent if they require an upfront payment. They may also ask you to share your information to receive the prize. Before accepting a free cruise or vacation, ask yourself: “Did I enter a contest for this?” If the answer is no, then it’s a scam.
- Luxury Trip Scam. Fraudsters advertise 5-star accommodation deals that promise luxury experiences. But these claims often leave travelers stranded in a 2-star hotel. Before making a reservation, be sure to ask for the name of the resort or hotel, check the reviews and contact the resort or hotel to verify the deal.
A Typical Example of Travel Fraud
One way to illustrate a common travel scam is through the sample story of Joanne and David Kim, a retired couple eager to make their dream of a European vacation a reality. Although this isn’t a real couple, this type of scenario is a realistic portrayal of what can happen when people travel to their vacation destination in a foreign country sight unseen.
Joanne and David found a listing online for an available house rental. The property “owner” requested they wire the full amount of the rental, plus a deposit, up front. They felt uncomfortable but proceeded with the assumption that this type of request was typical for travel planning to Europe. After parting with $3,800 USD, they noticed that he replied only through text, in short cryptic messages, when he replied at all. But Joanne and David brushed off their concerns and hoped for the best.
After arriving in Barcelona, the first leg of their trip, they went straight to the property. The true property owner answered the door and informed them that the house was his private residence, and he had never listed it for rent. Joanne and David had to scramble, $3,800 short, to find other accommodations.
[adrotate banner=”1009″]How to Protect Yourself
Scammers are persistent, so doing your due diligence is key to avoiding some of the most common scams. Here are some ways you can help protect yourself:
- Get it in writing. Buying (even partial ownership) a property such as a timeshare is a business transaction. Have your attorney review all agreements before signing. Look for cancellation rules (also known as “right of rescission”), read reviews on the management company and talk to the other timeshare owners of the property.
- Read the reviews and compare offers. Make it a habit to verify contact information for the listed property. Is it consistent across online platforms? Compare rental rates of nearby properties to ensure you’re paying a fair rate, and look for any extra fees such as internet, gym, pool or room service.
- Never wire money. Wire transfers, which are irreversible, are a common payment method for scammers. This rule applies to all forms of vacation properties, including hotels and resorts, so-called “free trips” or vacation rentals. A reputable establishment will allow you to pay by credit card and will never ask you for full payment upfront in cash or via wire.
- Take time to decide. Scammers understand that if a target has time to research, the fraud attempt might fail. This is why scammers often urge people to complete the transaction immediately. Do your research before deciding.
- Note the source of the vacation offer. Robocalls offering vacation deals at a discounted price are illegal – companies need your written permission to sell you something on the phone. An email or letter with a lot of spelling and grammatical errors might also be a red flag.
- Book with confidence. Never take a journey to a hotel or resort until you do an online search to check ratings and contact the property to verify reservations, amenities, location and the room. Well-traveled family and friends can also offer recommendations.
Travel Smartly and Safely
Travel might be just what you need after saving all your life for it. But it only takes a few clicks to fall into a scammer’s trap. This can take the joy out of travel and turn it into a miserable experience. To safeguard your travel plans, know what to look for and stay vigilant.
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*Average savings is based on new AMAC auto policyholders countrywide who reported savings to Travelers through the Affinity marketing distribution channel in 2021. Individual savings may vary. Savings are not guaranteed.
