The travel industry is one of the sectors most vulnerable to fraud, as fraud operations increased by 18 % during the summer peak season and 28 % in the peak winter season in 2024, according to a new report.
The report, which was published last Tuesday by the MasterCard Economic Institute, showed that the fraud of the travel agency and tourism companies reservations four times higher than the average fraud in other industries.
“Upon payment, the tour may never occur or a great difference from what you promised,” he said.
However, the fraud risk varies greatly from city to city, said David Man, the chief economist in the Asia Pacific Department at the MasterCard Economy Institute.
“In some destinations, you can see a lot of fraud in travel and the side of the tourist company. In other cities, it can be in things like food services. Good examples, in Los Angeles, (food) is the largest part in terms of we see some fraud,” he said to CNBC.Squawk box asiaFriday.
According to MasterCard data, tourists reported the lowest fraud rates in:
- San Francisco, United States
- Dublin, Ireland
- Seoul, South Korea
- Budapest, the Czech Republic
- Edinburgh, Scotland
However, travelers told these cities about higher levels of fraud:
- Cancun, Mexico
- Hanoi, Vietnam
- Dhaka, Bangladesh
- Bangkok, Thailand
The report showed that the type of fraud that was usually reported in cities is also different, as it includes problems in renting taxis and cars only 2 % of the reported cases reported in Hong Kong and Barcelona, but 66 % in Jakarta, Indonesia.
It showed that fraud in food services is more prominent in the United States and the Middle East, with 63 % of the reported cases in New York City. This includes restaurants that extinguish food, add unauthorized tips, or steal credit card details for travelers, according to MasterCard.
Before the trip begins
After the peak seasons, fraud in traveling during the reservation phase, Man said.
The report stated that the fraud on the planning of the trip increased more than 12 % in the past year, whether through photographs or “confirmation” that display the bank details or other forms of deception.
The report stated that travelers should monitor unusually low prices and summer rates “very good to an incredible”, especially in the famous tourist destinations that attract large crowds.
She said that to protect themselves from fraudulent activity, travelers can create digital portfolios, buy travel insurance or book flights using a credit card with fraud protection.
https://image.cnbcfm.com/api/v1/image/108147171-1747628340091-gettyimages-578292378-000099411671_Unapproved.jpeg?v=1747632324&w=1920&h=1080
Source link