Planning a vacation? Avoid travel scams

As temperatures are heating up, consumers’ thoughts are increasingly turning to making vacation plans. Unfortunately, scammers will be on the lookout as well … for unwary victims.

Travel has always been an area where consumers should have their anti-fraud antennae perked. Here are some of the types of travel scams NCL's Fraud Center staff have been hearing about recently: 

Vacation Rental Scams – These scams typically crop up on online classified sites like Craigslist.com. The victim will search for an apartment or home for rent in a desirable destination and find an attractive rental at a very low price. The victim contacts the “renter” (who is in reality a scam artist) who then requests a “deposit” on the rental. Typically it is requested that the deposit be sent via wire transfer transfer. The victim then arrives at the property to find that it either does not exist or that the condition has been misrepresented significantly. Efforts to get back the deposit fail. Scammers typically use images from a real property (often taken from real estate sites) to make their scams seem legitimate.

Timeshare Purchase Scams – Victims are lured to a high-pressure sales pitch (sometimes at the timeshare resort itself) with promises of a high-value “free” gift, such as a car, RV, or cruise package. The obtain the gift advertised, the victim has to pay a “fee” for delivery or processing. When the gift arrives (if it ever does), it is typically of much lesser value than presented to the victim.

Fraudulent Timeshares – The victim receives a package in the mail or via e-mal detailing a timeshare for sale. If the victim invest, they later find that the timeshare does not exist and the timeshare company has “gone out of business,” or otherwise is unable to return the deposit paid.

Fraudulent Vacation Packages – Victims see an advertisements for a deeply discounted vacation package at a luxurious resort or cruise. After the deposit is paid, the victim finds that the quality of the package has been grossly misrepresented and/or there are significant additional fees that must be paid at the destination to take advantage of the “great deal.” Efforts to recover deposits are generally unseuccessful.

Airfare Scams – Victims are lured in by promises of steeply discounted airfares. Once the purchase is made, the victim receives no confirmation or a counterfeit confirmation e-mail or paper ticket. A variant of this scam occurs when the victim purchases the ticket and is then told that their credit card purchase has been declined. A wire transfer is requested which results in no ticket and no way to recover the funds.

Tips for Avoiding Travel Scams 

• If payment is requested via wire transfer or bank-to-bank transfer, it’s a scam.
• Pay by credit card whenever possible so that fraudulent charges can be disputed.
• Review all fine print in vacation package or timeshare information and question any unusual or misleading language BEFORE payment.
• Check out travel companies with the Better Business Bureau.
• Look for travel companies that are affiliated with the American Society of Travel Agents, United States Tour Operators Association, or International Airline Travel Agency Network.
• Be especially wary of rentals advertised on online classified sites like Craigslist.
• Do your due diligence before investing in a timeshare or vacation club. Have an attorney review any documentation before signing. Remember, a good deal today will still be a good deal tomorrow.

Above all, trust your gut. If a deal sounds too good to be true, it probably is.