How to avoid being taken to the cleaners when taking a vacation

Spring break offers families and college students an opportunity to travel following a long hard winter. It also provides scammers the opportunity to offer fraudulent vacation rentals, third-party booking sites and travel agencies that are not on the up and up.

According to BBB Scam Tracker from February 1, 2021 to March 31, 2021, U.S. consumers lost nearly $160,000 to travel scams at an average of almost $3,200 per report.

Scammers often take advantage of consumer habits and capitalize on trending internet searches, enticing consumers with great deals on popular destinations or all-inclusive packages. While these scams happen year-round, now is peak time.

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So far this year, monetary losses due to travel scams have jumped 187% compared to the same period a year ago.

The Federal Trade Commission says, “Travel-related fraud cost U.S. consumers $74.7 million in losses and accounted for 27% of all fraud reported to the agency.”

People who wait, and then rush to firm up their plans are the most vulnerable. Scammers capitalize on consumers who are in a hurry and may not have the time to verify they are booking with a legitimate location or business. Always verify and be sure to check for customer complaints and reviews on BBB.org. That’s what we are here for.

The BBB lists these as the five most-reported travel scams:

Vacation rental con

These con artists lure in vacationers with the promise of low fees and great amenities. The “owner” creates a false sense of urgency — such as telling potential clients that another vacationer is interested in the rental — to get payment upfront before vacationers do sufficient research or question the legitimacy of the ad.

'Free' vacation scams

When a cruise or travel company advertises a vacation as “free,” it does not necessarily mean the trip is without cost or restrictions. Watch out for add-on fees for air transportation, port charges, taxes, tips and other undisclosed fees.

Hotel scams. When staying in a hotel, beware of scammers who use various techniques to obtain credit card information, including fake front desk calls, “free” wi-fi connections and fake food delivery.

Third-party booking site scams

If you book your airfare, hotel or other travel through a third-party website, be sure to use caution. BBB Scam Tracker continues to receive reports of scammers pretending to be online airline ticket brokers. In the most common version of the scam, travelers pay with a credit card and, shortly after making the payment, receive a call from the company asking to verify name, address, banking information or other personal details — something a legitimate company would never do.

Timeshare reselling cons

A timeshare owner looking to sell gets a call from someone claiming to be a real estate broker or agent. These scammers claim to specialize in timeshare resales and promise they have buyers ready to purchase. To secure this service, the scammer pressures the target into paying an upfront fee. The timeshare owner pays up, but the reselling agent never delivers.

Here are some tips to protect yourself:

Get trip details in writing.

Before making a final payment, get all the trip details in writing. Details should include the total cost, restrictions, cancellation penalties, and names of the airlines and hotels. Also, review and keep a copy of the airline and hotel’s cancellation and refund policies and the travel agency or booking site’s cancellation policies.

Avoid 'too good to be true' deals.

As is common in various scams, if the deal or discount seems too good to be true, it probably is. Scammers often use this tactic to lure in potential victims and use aggressive “limited time” language to entice travelers to pay before researching the business.

Avoid wiring money or using a prepaid debit card.

These payments are the same as sending cash. Once the money is sent, there is no way to get it back. Paying with a credit card can be disputed and dramatically limits liability from a fraudulent purchase.

Call the rental owner

If you are not using a service that verifies properties and owners, do not negotiate a rental solely by email. Many scammers don’t live locally. Speaking with the owner on the phone and asking detailed questions about the property and local attractions will clarify whether the listing is genuine. An owner with vague answers is a clear red flag.

Be cautious of unsolicited offers.

Be particularly cautious if you “win” a free trip without entering a contest or sweepstakes. This is especially true if the offer is time-sensitive and requires the consumer to accept and pay for the offer immediately or risk it going to another “winner.” Check the official website of the company the offer is originating from to verify that it is legitimate.

To stay on top of issues that may impact you, sign up for our Consumer Edge Newsletter at bbb.org/chicagobuzz.

Dennis Horton is director of the Rockford Regional Office of the Better Business Bureau.

This article originally appeared on Rockford Register Star: How to avoid being taken to the cleaners when taking a vacation