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Many travellers worry about falling victim to scams when visiting new places—concerns like pickpocketing or being tricked by what appears to be a legitimate tour company.
These fears, are not unfounded, according to a report by Mastercard Economic Institute.
A recent study reveals that the travel industry is a major target for scammers, who exploit tourists’ unfamiliarity.
The Mastercard Economic Institute analysed anonymised transaction data and found that the travel industry is one of the most vulnerable to fraud.
According to the data, fraud reports rise by 18 per cent at popular destinations during peak summer travel and surge by over 28 per cent at cold-weather spots during the winter season.
“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 says.
The report highlights several destinations where travelers are more likely to encounter fraud, including Cancun, Mexico; Hanoi, Vietnam; Dhaka, Bangladesh; and Bangkok, Thailand—all known for high tourist traffic.
In contrast, cities such as San Francisco, Dublin, Seoul, Budapest, and Edinburgh are among those with the lowest reported rates of travel-related fraud, making them relatively safer for visitors.
“This is a relative comparison, not a ranking of cities with the highest or lowest fraud rates,” the report states.
Travel-related fraud often starts well before departure.
In 2024, fraud during the early stages of trip planning increased by 12 per centcompared to the previous year.
According to the report, scammers frequently use manipulated destination photos, fake confirmation emails, and misleading travel deals to target travelers looking for bargains—especially as many try to save money in the face of rising inflation and economic pressure.
The report reveals that the most common travel scams involve fake travel agencies and sightseeing tours, with fraud in this area occurring at over four times the global average.
In some places, like Hong Kong, these scams are especially widespread—fraudulent agencies and tour operators account for 70 per cent of the city’s travel-related scams.
Fake travel agencies and tour operators are also widespread in Barcelona and Delhi, India, accounting for 64 per cent of travel scams in both cities.
They are similarly prevalent in Singapore (49 per cent) and Cancun (48 per cent), showing how common these scams are in major tourist hotspots.
Travelers should be cautious of tour operators offering unusually low prices or insisting on full prepayment upfront—these are key red flags of potential scams.
“Once paid, the tour may either never occur or be drastically different from what was promised,” according to the report.
