The global tourism market has made an impressive recovery in the post-pandemic years, and modest growth is predicted for the months ahead, even as some travellers look to spend less. 

But belt-tighteners looking for travel deals to save money should exercise caution. One of the biggest trends in travel fraud this year puts bargain-seeking travellers at the center of a growing dark web industry.

Fraudulent online travel agencies (OTAs), also known as “buy-for-you” (B4U) services, are sites managed by dark web professional fraudsters offering cheap bookings to legitimate and oftentimes unknowing customers. Scammers make the bookings with stolen credit cards or other illicit means and then pocket the legitimate payments. 

Increasingly, these fake OTAs obtain flights and hotel reservations using savvy schemes that take advantage of even the tiniest vulnerability in merchant fraud prevention systems. In fact, Riskified research shows just how aware fraudsters are of the signals merchants monitor and how they shape their tactics accordingly.  

Book-and-switch and other routes to travel fraud 

One fraud ring Riskified recently observed focused on flights scheduled for distant dates, keeping the dollars-to-days out ratio low to avoid a major merchant red flag.

The scammers could then easily bump up departure dates after booking without incurring new transaction scrutiny and ensuring travel took place before a chargeback or reversal could be processed. 

Fraud rings like this one frequently attempt to skirt detection with long lead times, established IP histories, or by booking with unusual connectivity combos such as desktop devices using cellular connections.

Scammers’ sophisticated understanding of travel merchant defenses opens the door for making fraudulent purchases they can then monetize through fake OTA services. 

And don’t think travellers come out ahead in this scenario. 

According to the Wall Street Journal, customers who use B4U services frequently end up being victims of pyramid-like exploitation, with their own cards skimmed and later used for more fraud.

Profitable and liquid, fraud thrives everywhere in the global travel ecosystem. Chargebacks remain challenging for travel merchants, loyalty programs are still a prime fraud target, and high risk levels generally reduce bank authorization rates and revenue. 

Find the right destination for every journey

Travel merchants can do plenty to mitigate the operational, financial, and reputational risks of fraud. Machine learning and broad data networks can help vendors rapidly identify bad orders, maximize good bookings, and stay ahead of criminals selling cheap travel at a high cost.

Get the rundown

In the latest Riskified Risk Rundown, learn more about current fraud trends facing travel merchants and get a roadmap for fraud prevention.