Traveling for the holidays? Beware of these common scams, lawmakers warn
Lawmakers are warning travelers to beware of a range of scams that tend to proliferate during the holiday season, including phishing schemes involving phony websites, as well as criminals who impersonate airlines and hotels.
Online travel fraud has surged, accounting for $1 trillion in global financial losses in 2024, according to the Joint Economic Committee (JEC), which issued the warning on Wednesday. For example, such scams can lead to consumers paying for fake trips or booking accommodations that look nothing like how they are pictured online.
"While the winter holidays are one of the busiest travel seasons of the year, they're also one of the busiest seasons for scammers impersonating airlines, hotels and rental platforms," U.S. Senator Maggie Hassan, the panel's ranking member, said in a statement. "As millions of Americans prepare to travel to see their loved ones over the next few weeks, everyone should also prepare to protect themselves against rampant travel scams."
The JEC, a bipartisan group of House and Senate lawmakers that advises Congress on economic issues, also called on the Federal Trade Commission to indicate what steps it is taking alongside U.S. technology companies to protect consumers from overseas scam networks. Organized foreign criminals stole $10 billion from Americans in 2024, up 66% from the prior year.
In a letter, the panel pressed the FTC to detail how it is working with social media sites, dating platforms, financial technology companies and other actors to disrupt travel fraud. Lawmakers also requested details on how much money the FTC has allocated to protect Americans from overseas fraud.
The panel's Democratic minority cited data from travel and payment firms showing a sharp rise in online fraud around the holidays.
Travel fraud is among the most common types of criminal activity, according to the FTC, which said it accounted for $274 million in U.S. consumer losses in 2024. Research from the Mastercard Economics Institute has found that fraud spikes by up to 28% during peak travel seasons.
Common travel scams
Criminals employ a range of tactics to extract payment details or other personal information from travelers. One common ploy is to send a text message claiming that a person's flight has been canceled, according to the JEC.
"These texts, which appear to come from major airlines, direct customers to a fake number or link to rebook their travel," warned the panel, which advises people to verify any schedule changes with their airline.
Scammers may also pose as legitimate business representatives in replying to travelers' social media posts about flight delays or other travel headaches. In addition, fraudsters are known to pay to appear in online search results, advertising phony customer service numbers that lead directly to a scammer.
How to avoid getting burned
The JEC advised travelers always to consult official company websites or apps when seeking information, and not to click on links sent by text or email directing them to a website. Consumers should also be leery of online ads, sponsored search results or links posted on social media, the lawmakers warned.
If a travel company is unfamiliar, meanwhile, the panel advises travelers to check sites like the Better Business Bureau, where other customers can post reviews and complaints. Clues indicating a possible scam include misspelled or extra words in a website address.
Consumers should also beware vendors that describe accommodations as luxurious, but don't provide details such as a hotel's name or location, the JEC said. If a company does not list its cancellation or refund policy, or requests payment in cryptocurrency, that could also be suspicious, according to the committee.