Travel scam losses have nearly tripled nationwide, rising from $99 million in 2021 to $297 million, as scammers use increasingly sophisticated tactics.
Many consumers are changing how they book trips, with more than four in 10 avoiding unfamiliar booking methods and booking directly with travel providers instead.
Experts say AI is making fake websites, reviews, and travel deals more convincing, making it more important than ever to verify bookings and watch for red flags.
Planning a vacation should be exciting, but for many travelers, concerns about scams are becoming part of the booking process.
A new analysis from LocalsInsider.com found that reported losses from vacation and travel fraud have surged nationwide, climbing from $99 million in 2021 to $297 million today. As scammers become more sophisticated, consumers are increasingly worried about fake booking websites, fraudulent vacation rentals, misleading travel ads, and reviews that may not be written by real people.
The growing threat appears to be changing travel habits. According to the LocalsInsider.com survey, more than four in 10 Americans say scam concerns have changed how they book travel, while one-third report feeling more hesitant to book leisure trips altogether.
ConsumerAffairs spoke with Collin Czarnecki, a researcher on behalf of LocalsInsider.com, who explained how to carefully vet travel deals before making a reservation.
Why are travel scams surging?
According to Czarnecki, a few factors converged at once to create the surge in travel scams:
The post-pandemic travel surge drove a massive spike in online bookings.
With more transactions happening online across more platforms, scammers simply had more opportunities.
Fake travel deals and sponsored ads are now a mainstream scam vehicle, and our survey found that more than one in five Americans have already clicked on one.
“The sharpest jump in our data came between 2023 and 2024, when losses climbed from roughly $125 million to more than $275 million in a single year,” he said. “That timing lines up with the widespread consumer adoption of AI tools, which have made it significantly easier to produce convincing fake listings, reviews, emails, and websites.
“Scammers who once needed technical skill or resources can now generate convincing fraud in minutes due to AI. The combination of more travelers booking online and better tools for deception is largely what's driving these numbers.”
Spot the red flags
One of the biggest concerns with these scams is that they’re hard to spot. The survey found that more than one-third of Americans (36%) aren't confident they can spot an AI-generated review.
Czarnecki recommends knowing how to spot a real review from a fake.
“Legitimate reviews tend to mention real details such as a room number, a staff member's name, a particular dish at the restaurant, a noise issue they dealt with,” he said. “But AI-generated reviews tend to be positive and generalized.
“It’s also important to look at the reviewer profile. Accounts with no photo, no review history, and a single review posted are a warning sign. Tools like Fakespot can also help analyze review authenticity on platforms like Amazon and Tripadvisor.”
Other tips: book directly and pay with a credit card.
“When you do use a third-party platform, it’s best to stick to well-established names and avoid booking through social media ads entirely,” Czarnecki said. “Our survey found that 80% of travelers who changed their habits after a fraud concern now go straight to airline or hotel websites rather than clicking through ads or using unfamiliar third-party platforms. That alone eliminates a significant portion of the risk.
“Paying with a credit card rather than a debit card also gives you meaningful fraud protection. Overall, 41% of the travelers in our survey who changed their habits made the switch specifically for that reason.”
Be vigilant when you book
If you find yourself booking a trip in the coming weeks or months, there are a few ways to help reduce your risk of falling victim to a scam.
Here are Czarnecki’s’ best tips:
Book directly with airlines and hotels.
Spending more time vetting unfamiliar companies.
Avoid social media deals.
Pay with a credit card.
Protect your loyalty accounts.
Think twice whenever you see urgency messaging.
“Overall, 87% of Americans say they're confident they could recognize a travel scam before losing money, but 22% have already clicked on a fake ad, 41% have received a suspicious travel-related text, and 36% aren't sure they could spot a fake AI-generated review,” Czarnecki said. “People significantly overestimate how prepared they are, and that gap is exactly what scammers count on.”