The idea of booking a dream holiday only to find out it doesn't exist is truly the stuff of nightmares. But for many, it's a reality, and it's only getting worse, according to multiple reports. In fact, according to CNBC, the travel industry is one of the sectors most susceptible to fraud, with scams rising 18 per cent during the summer peak season and 28 per cent in the winter peak season last year in the US. There are a few reasons why holiday scams are happening more than ever before, with artificial intelligence (AI), chatbots and sophisticated fake websites taking some of the blame.
In the UK, the picture is just as bleak. Travel company eShores stated that a staggering £12.3 million was stolen by fraudsters from unsuspecting holidaymakers in 2024 alone. The company's director, Gavin Lapidus, explains: "Scammers are becoming increasingly clever, using tactics that can fool even the savviest of travellers. It's crucial to stay vigilant and know the warning signs."
Andy Brooker, travel expert at kate & tom's, agrees the issue is a crucial one. "Entire fraudulent travel companies are operating abroad, and Action Fraud reported UK consumers losing £11 million to these travel scams," he told HELLO!. "Awareness is key for travellers, and only booking through trusted, legitimate providers is crucial." So, what are the signs to look out for? We gathered a series of experts who have laid out the red flags to be wary of when it comes to booking your dream trip so you're armed with the knowledge of what is normal and what isn't. Your travel plans and bank balance will thank you.
The most common ways travel scammers steal from holidaymakers - Fake rental listings
Eric O'Neill, a Former FBI Counterterrorism agent and author of the book Spies, Lies, and Cybercrime: Cybersecurity Tactics to Outsmart Hackers and Disarm Scammers, goes into this very subject. One of the ways in which scammers make their money is by stealing legitimate listings from other sites, only to rob consumers of the money they pay. "Scammers copy real Airbnb or VRBO listings and repost them on third-party sites or classifieds, then ask for payment via Zelle, wire transfer, or crypto. Victims often find out they've been duped when they arrive and someone else is already in the rental – or it doesn't exist at all.
Similar to the fake rental listing problem, copycat sites that replicate other travel companies are "rife" and difficult to determine whether they're legitimate. Andy says: "Copycat sites are a big culprit, and especially with AI's input, they're more realistic than ever. Holidaymakers are often lured in with exciting deals that are the epitome of 'too good to be true', tricking them into rushing into flash deals."
eShores note that the rise of illegitimate social media getaways is more prevalent than ever, but they're often not what you think. "Everyone has seen those enticing Facebook posts promising luxury holidays for just a share and a like, but sadly, they're often too good to be true. Scammers use these to collect personal data and can also spread malware. To stay safe, always verify the legitimacy of competitions and never share personal information on public posts."
Another common tactic scammers use is hacking into internet connections. Laura Evans-Fisk, Head of Digital & Engagement at Eurochange, says: "Wi-Fi and ATM 'skimming' is also becoming increasingly common. This is where scammers set up fake Wi-Fi hotspots or tamper with ATMs in popular tourist areas and then steal a victim's financial information - either whilst they’re browsing online and enter their details to make a purchase, or by installing hidden cameras into an ATM to spot their PIN."
How to avoid getting scammed – Check for ATOL protection
One of the first points of call is to check that the company is ATOL protected. As eShores explains it, it's a "government-backed scheme that ensures you won't lose money or become stranded abroad if your travel company ceases trading. Many reputable travel companies, including eShores, offer ATOL protection and you can verify a company's ATOL status on the Civil Aviation Authority's website."
We all love a good bargain, but generally speaking, the experts note that if a price looks too good to be true, it probably is. Georgia Fowkes, a travel advisor at Altezza Travel, told HELLO! "One of the clearest red flags is a price that doesn't match reality. I was once caught in Rome myself - they offered me a 'luxury apt' in the middle of tourist summer but in a hostel price. Sweet, sweet ignorance. The photos were amazing, the host was helpful and replied instantly, but insisted on full payment by a direct transfer. So I went there, following the address on the map, but there was nothing. My personal rule is to double-check everything in at least two places. If it's accommodation, I look for real photos on Google Maps. If it's a tour, I search for reviews on social media - not just on their own website."
Another thing that the experts agree on is making sure you book with a credit card for an extra layer of protection. Laura Evans-Fisk says: "Even if you do pay for a fraudulent booking, you should be able to receive your money back via your credit card provider once you make a claim."
Even if you think what you're booking looks legitimate, Andy notes that it's worth double-checking on verified and reputable sites for a review just to be extra sure. "It's best practice for travellers to check third-party review sites for another layer of protection, like Trustpilot," he says. "Checking providers on third-party websites prior to booking is a great way to determine whether a site is legitimate. Doing research and comparing listings against trusted sources is also a great way to determine whether a holiday is within the expected price range."
Finally, Andy says that being in the know is the best way to protect yourself, but more should be done to protect consumers. "There's a shared responsibility between regulators, consumers, and travel companies. For consumers, awareness is paramount, and being able to spot the signs is really important to protect yourself from scams. Legitimate travel platforms can take steps to increase their security and verification processes to differentiate from fake sites."
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