Watch out: Fake travel deals are on the rise, costing victims $37B

As summer travel surges, cybercriminals are capitalizing on vacation demand. They create fake travel agencies that offer luxury trips at a price that’s hard to say no to. Unless you know it’s a scam.

These “dark web travel agencies” post ads on the open web and nice-looking fake booking sites. When a traveler books a trip, scammers charge them the actual reduced fee. The catch is that at the same time, they secretly use compromised payment information to cover the full cost of the trip.

This allows the scammers to pocket the difference between what the fake customer pays and what the stolen card covers. Often, these are sums of hundreds or thousands of dollars per booking.

Travelers often remain unaware that the payment was processed illegally because all booking details include their real names and contact information. This use of stolen credit cards and loyalty program credentials results in booked flights, hotels, and even destination weddings.

This form of “triangulation fraud” has become a fast-growing scheme in the online travel world, say experts who spoke to the Wall Street Journal.

This underground “industry” is highly organized. Some dark web agencies have even built a reputation for good “customer service,” as they quickly react if a soon-to-be victim reports on a flagged or rejected payment. The scammers quickly rebook the trips.

Cybersecurity firm Trustwave has tracked multiple active groups offering full-service bookings, with one known as “Pastriarch”. It advertises high-end vacation trips up to 50% off.

Riskified, a payments security firm, estimates that $37 billion in fraudulent online travel transactions occurred globally over the past year. Airline frequent flyer accounts with high mile balances can sell for up to $700, while guides for hacking into travel systems are openly traded online for a few hundred dollars.

However, not all victims fall for this scam — they’re actually in on it. Some knowingly participate and may face legal consequences. In return for their cooperation or silence, these fake customers get luxury trips at a steep discount. In contrast, true victims hand over personal and card data that’s later used for further fraud.

Meanwhile, the hospitality industry is struggling to detect and stop these fast-moving schemes. Fraudsters often book trips only a day or two in advance to avoid detection, and when one payment method fails, they immediately switch to another stolen card.

Industry leaders are urging consumers to stay vigilant, double-check booking sources, and watch for signs of suspicious deals.