Holiday travel scam warning issued to Americans

As America enters an especially busy travel season, lawmakers from both major parties are warning that a growing number of fraudsters are preparing to take advantage of the surge in demand.

According to a bipartisan report released Wednesday by the Joint Economic Committee (JEC), a bicameral body that advises Congress, travel-related fraud has been “rapidly increasing” in the U.S. and consumers are in dire need of “practical tips on how to spot and protect themselves from scams.”

“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,” said Senator Maggie Hassan, a New Hampshire Democrat. “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.”

Why It Matters

As noted in the report, travel scams can cost consumers hundreds of millions of dollars each year, with the Federal Trade Commission (FTC) calculating about $274 million in losses from this kind of fraud in 2024. Research has shown that scams are on the rise and peak during the holiday season, with travelers and merchants bearing the costs of increasingly sophisticated and hard-to-detect cons.

What To Know

More than half of all Americans (54 percent) plan to travel this holiday season, according to a November survey from Deloitte, up 5 percent from 2024 despite nearly one-third saying their financial situation has deteriorated. This raises the risk that more Americans will be targeted and fall prey to travel scams, which the report notes can take many forms.

“These scams often involve scammers creating fake travel sites or impersonating airlines or hotels to elicit a fraudulent payment or steal someone’s identity,” it reads. “Scammers are trying to trick people into paying for trips or lodging that are nonexistent, have exorbitant hidden fees, or are of a far lower quality than advertised.”

In mid-2024, Marnie Wilking, Booking.com’s internet safety head, said the company had recorded a 500 percent to 900 percent increase in travel scams over the previous 18 months, a surge she said was largely driven by the rise of artificial intelligence.

The FTC has issued advice to travelers about how to avoid fraudulent schemes, urging consumers to avoid offers of “free” vacations, avoid paying anyone via non-traditional means like gift cards or cryptocurrency, and to “do some research.”

“Look up travel companies, hotels, rentals and agents with the words ‘scam,’ ‘review’ or ‘complaint.’ See what others say about them before you commit,” it writes. “Also, check that the address of the property really exists. If the property is located in a resort, call the front desk and confirm their location and other details on the contract.”

The JEC has also told travelers to remain vigilant about fake flight cancellation messages, unexpected messages from customer service representatives and “take extra precautions when booking travel through third-party services.”

What People Are Saying

Republican Representative and JEC Chairman David Schweikert of Arizona, in the report: “Criminal enterprises across the world are using cyberspace to prey on American consumers, and unfortunately, they target the holidays as an opportune time to steal your hard-earned money. This holiday season, as millions of Americans, including seniors, take to the internet to purchase gifts, make travel plans, and send online payments, please be vigilant. Don’t click on links you don’t know or visit third-party sites that obscure who is handling your money, and ensure when you are making purchases you are using a reputable site preferably run by the airline, hotel, or other known companies.”

The FTC, in advice to travelers posted to its website: “You may get a call, a text message, an email, or a flyer in the mail. Or maybe you’ll see an online ad promising free or low-cost travel deals and services. Before you start making plans, know that scammers and dishonest companies may be behind these offers. You may end up paying hidden fees — or worse: after you pay, you might find out it’s all a scam.”

What Happens Next

The JEC’s alert is part of ongoing congressional efforts to counter what it calls “the soaring rates of scams” in the U.S. and globally.