Travellers are significantly more likely to experience fraud related to travel agencies and tour companies than other industries, a new report from the Mastercard Economics Institute (MEI) shows.
The MEI analysis found tourists are four times more likely to report fraud connected to booking and tour services than to other sectors. Spontaneous, on-the-ground bookings for day trips or excursions and dealings with local operators were singled out as practices that raise exposure to scams. Transport services, including car rentals and taxi firms, also produced a disproportionate share of complaints compared with air and rail travel.
The report identified several destinations where fraud reports were particularly high and others where complaints were comparatively low. Bangkok, Cancun, multiple locations in Vietnam and Dhaka featured among places with the highest number of travel-related fraud reports. San Francisco, Dublin, Seoul, Budapest and Edinburgh ranked among cities with the lowest reported rates.
Types of reported scams varied by destination. In New York, 63% of tourists who said they had been scammed told police the incidents involved restaurants or takeaway orders; Los Angeles had a 75% share of food-related complaints. Taxi and car-hire issues represented 66% of complaints in Jakarta, Indonesia. The MEI said seasonal patterns also matter: high season saw an 18% increase in scam reports overall, and winter destinations experienced a 28% rise during peak visitor periods.
"Whether it is scammers targeting unsuspecting travelers or deceptive activities within the booking process, the travel industry is a known target for fraudsters," the report said, noting that understanding trends is particularly important in times of economic uncertainty.
To reduce risk, the MEI and independent consumer advisers recommended steps travellers can take before and during trips. Paying with a credit card and having travel insurance were highlighted as key protections. Under Section 75 of the Consumer Credit Act 1974, customers in the UK who use a credit card for purchases retain the right to claim a refund for goods or services that are poor quality, fraudulent or cancelled, the report noted.
Digital payments were presented as another layer of defence. The MEI recommended mobile wallets protected by tokenization technology, which replace card details with surrogate digital identifiers unique to each transaction, thereby reducing the chance of data theft. The report coincided with separate data from Link, the cash-access and ATM network, showing that more than half of Britons now commonly leave physical wallets at home. Link’s figures indicate only 48% of UK adults consider carrying a physical wallet essential, while Generation Z and millennials increasingly use mobile wallets such as Apple Pay or Google Pay.
The MEI emphasised routine precautions as well: confirm credentials and reviews for local operators before paying, use established booking platforms where possible, keep records of transactions and receipts, and be cautious with cash or unfamiliar payment requests. The institute’s findings aim to inform both consumers and industry participants about where and how fraud emerges so mitigation efforts can be targeted.
The report adds to a body of research tracking fraud patterns in tourism and payments. Its authors said the combination of varied local scams, peak-season surges and evolving payment technologies requires continuous monitoring by policymakers, payment providers and travellers to limit losses and improve consumer protection.