Many travelers worry about falling victim to scams when visiting new destinations fears that are well-founded, according to a recent report by the Mastercard Economic Institute.
The study, which analysed anonymised transaction data globally, reveals that the travel industry is one of the most vulnerable sectors to fraud, as scammers exploit tourists’ unfamiliarity and eagerness.
Fraud reports spike seasonally: they increase by 18% at popular summer destinations and surge by more than 28% at cold-weather spots during winter.
“Popular tourist destinations, particularly those that attract large crowds, are prime targets for fraudsters due to the high concentration of visitors and the increased volume of transactions,” the report explains.
Destinations such as Cancun (Mexico), Hanoi (Vietnam), Dhaka (Bangladesh), and Bangkok (Thailand) rank among the places where travelers face the highest risks of encountering fraud, owing to their heavy tourist traffic.
Conversely, cities like San Francisco, Dublin, Seoul, Budapest, and Edinburgh report relatively low rates of travel-related fraud, suggesting safer environments for visitors.
“This is a relative comparison, not a ranking of cities with the highest or lowest fraud rates,” the report clarifies.
Early-Stage Trip Planning Frauds on the Rise
Fraud does not only occur during trips it often begins well before travelers depart.
In 2024, scams related to the early stages of trip planning rose by 12% compared to the previous year. Fraudsters frequently lure travelers with manipulated destination photos, fake confirmation emails, and misleading travel deals, preying especially on bargain hunters amid economic pressures and inflation.
Fake Travel Agencies and Tour Operators: The Biggest Threat
The most common travel scams involve fake travel agencies and sightseeing tours, with fraud in this area occurring at more than four times the global average.
In Hong Kong, fraudulent agencies and tour operators account for 70% of travel-related scams. Similar patterns are seen in Barcelona and Delhi (India), each with 64%, followed by Singapore (49%) and Cancun (48%).
Travelers are advised to be wary of tour operators offering prices that seem too good to be true or demanding full payment upfront classic red flags of potential fraud.
“Once paid, the tour may either never occur or be drastically different from what was promised,” warns the report.
