As the cooler months approach, many Australians may be planning to escape the winter chill and head overseas for a well-deserved holiday. Whether you're booking an island getaway, a European adventure, or a tropical retreat, it’s important to ensure your travel plans are secure and legitimate.
"Scammers often lure travellers with discounted travel packages that promise luxurious accommodation, exclusive deals, or free prizes, only for the victim to realise none of it was true," explained Acting Chief of Financial Crimes and Cyber Resilience of Customer Owned Banking Association (COBA), Martin Latimer.
To help ensure your holiday plans go ahead, COBA’s financial crimes team share expert tips on how to identify and avoid travel scams.
What is a travel scam?
A travel scam entices travellers with cheap flights and accommodation offers, free vacations, or exclusive holiday rentals that promise the holiday of a lifetime. Scammers create fake listings for popular travel destinations that mimic legitimate online travel agencies, often requiring payment upfront or requesting unusual and unsecured methods of payment that scam victims out of money.
Travel scams can take many forms, including:
- Fake travel websites, booking platforms or rental listings advertised online.
- Unsolicited calls or emails offering free or heavily discounted luxury vacations.
- Fraudulent online marketplaces where scammers demand upfront payments for non-existent bookings.
“These fake travel deals target victims booking big overseas holidays or short domestic trips, so it’s important to ensure you’re using reputable sites and avoid any requests for suspicious methods of payment,” Martin says.
“Once the victim hands their money over to the scammer, they may discover the deal doesn’t exist, the accommodation listing was fake, or – upon arrival at the destination – realise it’s nothing like what was advertised,” he adds.
Tips to protect yourself
- Do your research: Verify the legitimacy of travel websites, agencies, or accommodation listings by reading reviews from other travellers or asking for proof of the agency’s accreditation or certification. Beware of listings with limited photos, vague descriptions, or deals significantly cheaper than market rates.
- Be sceptical of unsolicited travel offers: Avoid holiday deals that seem too good to be true, especially if they’re unexpected. You may receive emails notifying that you’ve won a free vacation and ask you to click a link to claim the prize – this is likely a scam, especially if you haven’t entered any competition.
- Use secure payment methods: Avoid transferring money or paying through untraceable methods like gift cards or cryptocurrency.
- Before you set off, remember to notify your bank of your overseas travel plans to help protect your accounts and avoid disruptions while using your cards abroad. Australian Mutual Bank members can do this via Internet Banking, the Mobile Banking App, contacting our friendly Member service team on 13 61 91 (Monday to Friday 8:00am - 7:00pm, Saturday 8:30am - 11:30am, Sydney time) or by visiting a branch. For more information, check out our Travel FAQs.
Stay vigilant during travel
Remember, travel scams don’t stop once you’re on holiday as scammers can lurk in popular tourist destinations and trick travellers looking to use common services or holiday activities. These can include:
- Taxi scams.
- Vehicle hire scams.
- Wrong or overcharging scams.
- Credit card skimming.
- Pickpocketing and theft scams.
- Visa scams.
- Fake ticket scams.
- QR code scams.
- “Carry my bag” scams.
More information on how these scams occur and how you can protect yourself is found at Smartraveller.
What to do if you suspect a scam
If you believe you may have been a victim or lost money to a scam, it’s important to notify your financial institution as soon as possible.
Australian Mutual Bank members can speak to our Fraud Team by calling 13 61 91 (Monday to Friday 8:00am - 7:00pm, Saturday 8:30am - 11:30am, Sydney time) or by emailing info@australianmutual.bank.
Seek support from IDCARE (a free government-funded service) who can help you develop a response plan to limit the damage. IDCARE will never contact you out of the blue.
Help others and keep authorities in the know by reporting the scam to Scamwatch.
Beware of follow up scams, particularly ones promising to help you get your money back. One in three victims of a scam have been scammed more than once according to Scamwatch.
If you or someone you know has been impacted and may need ongoing help, there are support services available. These avenues of support are available to help, listen and believe.
For more advice on how to avoid scams, see our Security Advice section or visit the Scamwatch website at www.scamwatch.gov.au.
Customer-owned banks are dedicated to safeguarding their customers from scams and fraud. In November 2023, 55 mutual banks and credit unions demonstrated this commitment by joining forces to launch the Scam-Safe Accord with the Australian Banking Association. This industry-wide initiative represents a united front against scammers and reinforces the banking sector’s determination to strengthen consumer protection. Find out more about the Scam-Safe Accord here.
Source: Customer Owned Banking Association (COBA)
Any advice or information on this article does not take into account your personal objectives, financial situation or needs and you should consider whether it is appropriate for you.
