5 Fraud Red Flags for Travel Advisors to Watch Out For
by Briana Bonfiglio /No travel advisor wants to receive a chargeback on one of their bookings. They can be a headache to fight, whether it’s an unsatisfied client or family who takes a vacation they can’t afford.
But when a bad actor steals a credit card or commits identity theft to pay for travel, that’s when the situation rises to the level of fraud. In these cases, actual cardholders file a chargeback that cannot be recouped.
Although many suppliers’ booking platforms have technology in place to detect and halt these transactions, fraud still remains quite common in the travel industry. Cyberattacks on banks or credit unions have recently led to credit card information falling into the wrong hands. So, what’s a travel advisor to do?
Education is key
All travel advisors should keep up to date with fraud education through their host agencies or frequent supplier partners. As our technological world rapidly changes, so do the fraudsters’ scamming tricks.
“Fraud is just so broad in our industry, and it really takes everyone keeping their eyes open to try to mitigate it as much as possible,” Robbi Jumaa Hamida, senior vice president of Nexion Travel Group, told TMR. “It’s really staying on top of the education because the fraud methods do change. Our industry is always evolving.”
For the next month, Nexion is holding a once-weekly Fighting Fraud Friday series for its members to learn more about scams to watch out for.
ALG Vacations also provides fraud training for its travel advisors. At the company’s recent Ascend Conference, Jim Tedesco, vice president of sales, said that fraud is “unfortunately a cost of doing business, but there are ways to mitigate that risk so that your cost is very low and your attention to it is very high.”
Here are some of the red flags that advisors should be aware of, especially when booking air and hotels for clients you don’t know.
5 red flags to spot fraud
1. Do you know the person? Always be on high alert when doing business with someone you don’t know. Getting to know the client better, and learning why they’re taking the trip, can help either put your mind at ease – or be on the lookout for more red flags. One of these red flags alone may not be cause for concern, but it’s important to watch out for them in case they pile up.
2. Did the card get declined? Cards can get declined for various reasons. Once you know you’ve entered the correct information, check in with the client. You can ask for a different payment method, a form of identification, or a signed credit card authorization to cover yourself.
“All those are legitimate things that you can ask for before processing a credit card transaction if you do not know that customer, and even for the people you do know,” Tedesco said.
3. Are they traveling close in? If a client is booking for a hotel or flight for travel that’s only a month or less away, that’s a red flag, and you should be asking that client questions to make sure they’re sincere. You can also consider sending over a terms and conditions form for signature.
4. Does the name or address on the credit card not match the traveler’s? There are many times when different family members pay for a trip, and that’s OK. But this is yet another red flag to keep in mind and a conversation to be had with the client.
5. Is it air only, land only, or both, with a very high air cost? Fraudsters will sometimes book a high-priced air ticket for a few months out, then exchange it for a flight the next day – before the true cardholder realizes what’s happened. So always be wary of air-only bookings. Scammers may also book land with the air to throw you off the scent, though, so any expensive air tickets paired with lower-cost vacations are a red flag.
Other helpful tips
It’s not only airline ticket bookings to far-off destinations that are the targets for fraud anymore, Hamida said. It can be hotel stays, domestic flights – anything. Also, it’s not just newer advisors who get scammed. Oftentimes, it can be more experienced advisors who got busy and forgot to check for red flags.
Fraud also comes in all forms, not just credit card scams. Travel advisors should be vigilant about protecting their GDS login credentials and always be on high alert for phishing emails.
Hamida also urges travel advisors to keep their personal social media accounts private, or at least to not post where they are at that moment. Scammers can use this information to strike when they know you aren’t paying much attention.
Be aware that fraudsters can find out information about you – such as the type of travel you book – and use that to their advantage.
What to do if you have been hit by fraud
Many times, travel advisors are hesitant to admit when they’ve been hit by fraud, but experts say to not be ashamed. Fraudsters are clever, and it happens more often than you think.
So, if you do discover fraud in your transactions, the best thing to do is to report it to your agency or supplier immediately. Travel-related fraud, especially airline ticket sales, should also be reported to the ARC.
It’s also important to provide as much information as possible to the party who is helping you dispute the case. It will also help them report it to the proper authorities – the FBI does make attempts at finding fraud patterns and catching the perpetrators.