How to Avoid Financial Fraud While Traveling

Since early 2023, travel websites have seen up to a 900% increase in financial fraud, according to a Booking.com executive. For example, scammers are tricking travelers into providing their financial information through phishing emails or fraudulent websites that mimic real travel sites.

Vacation rental scams aren’t the only travel cons to watch out for. Scammers are also stealing from travelers by:

A financial travel scam can mean a loss of money and in some cases, a ruined vacation. For example, 13% of respondents to a recent survey paid a deposit and traveled to a destination, only to discover upon arrival that the rental did not exist.

Before your next trip, remember to take the following precautions to protect your money while booking and during your travels.

When making travel reservations, watch out for fake ticketing or travel booking websites that offer extreme discounts for flights or accommodations. Remember that if a deal seems too good to be true, it probably is.

Before booking, take time to verify the authenticity of the website you’re using. Double-check the URL, looking for misspellings in the brand name or other errors. Also, look for a padlock symbol associated with the URL, and see whether the site has a security certificate, also known as an SSL certificate.

If a website redirects you to wire money or make a bank transfer outside of the main platform, that’s a red flag. A scammer may be trying to steal your information and keep you from using a secure payment method.

Also, don’t click on links in unsolicited emails. Doing so could take you to a malicious website that might steal your personal details and infect your device with malware.

Consider booking travel with a travel agent you trust to avoid fraudulent bookings. If you don’t know a trusted travel advisor, ask friends for referrals or look for referrals from a professional association of travel agencies.

Some financial scammers target people who are traveling, assuming they will not be paying close attention to their finances while away from home. Protect yourself by taking some financial precautions before you travel:

While traveling, some payment methods are better than others when it comes to protecting you from financial fraud. For example, credit cards offer significantly better fraud protection than debit cards. If your credit card is lost or stolen, typically you will not be liable for fraudulent charges higher than $50, if you report the fraud in a timely manner.

However, if your debit card is lost or stolen, you may be responsible for the full amount of any unauthorized charges. In addition, debit card details can be swiped at the point of sale with card skimmers. And because a debit card connects directly to your bank account, if the card is compromised, your entire bank account balance can be at risk.

Mobile payment platforms such as Apple Pay and Google Pay also can offer financial security when traveling. When you pay with a mobile app, the app doesn’t share your card number. Instead, it generates a token, a series of random numbers, for each transaction. And because mobile payment apps require you to enter a PIN or authenticate your transaction with biometrics like a fingerprint or face ID, a stranger who gains access to your device would probably not be able to make purchases with your mobile wallet.

Protecting your finances with digital security is important anytime, but it’s especially essential when traveling. Avoid using unsecured wi-fi and set up multi-factor authentication for all financial apps. Also, be sure to set up device tracking in case you misplace your phone during your trip.

Even if you don’t plan to spend time managing your finances while away from home, set up real-time transaction alerts so you’ll be notified each time one of your accounts is used to make a purchase. For example, Forbright Bank offers an easy, self-service option to set up alerts in online banking for digital accounts. Take time to check your account balances regularly and watch for any indicators of suspicious activity.

Beyond protecting your financial accounts, you can protect yourself from social engineering schemes by waiting to post photos of your trip online until after returning home. If your social media posts alert fraudsters that you’re traveling, they may track your movements while you’re traveling and gain your trust through carefully crafted messages.

If you believe you’ve been a victim of financial fraud or theft, communicate with your financial institution as soon as possible and take action to cancel your credit card or debit card to stop any future fraudulent transactions. Report the incident to local law enforcement. If you are traveling internationally, consider accessing assistance from the U.S. embassy. You may also file a complaint with the Federal Trade Commission.

Disclaimer: This article is for general information and education only. It should not be considered
financial or tax advice.