Vacation scams and travel-related frauds cost consumers tens of billions of dollars every year. As it is with many industries, scam artists are unscrupulous when it comes to ripping people off and upsetting travellers’ holiday dreams.

The key to protecting yourself from becoming a victim of a vacation scam is to become educated about the tactics used in the most common vacation frauds.
 
1) Unsolicited Free Holiday Prize Offering
This is probably the most common form of vacation scam. A telemarketer (often using the name of a reputable company, organization or financial institution) contacts victims to tell them they have won a free holiday prize offering. Whether it is a free cruise, all-inclusive resort, airfare or other holiday travel package, the scammer usually requires that victims secure the holiday or confirm the booking of the vacation package through their credit card. The scammer collects the credit card information and other personal information for the purpose of identity theft.

2) Vacation Rental Scam
In this fraud, scammers typically use classified advertising sources in local or national newspapers, on bulletin boards or online (such as Craigslist) to lure in victims. Promising a fabulous vacation rental destination, the scam artist may provide pictures, testimonials and offer great discount rates on a vacation rental. In many cases, the scammer has no affiliation to the rental property advertised, or has made up a great-sounding accommodation. Victims are required to pay in advance for the rental property, usually via cheque or money order or sometimes credit card. Once the payment is made, the scam artist disappears with the money, and the victim is left out-of-pocket for the cost of the accommodation. 

3) Prize Pitch
Similar to the above scams, victims are informed they have been specially selected to win a prize or vacation or the option to choose from a variety of prize or vacation options. In some instances, the victim may have recently filled out a ballot or entered to win a vacation (often at a home, boat or auto show). Victims are then told that in order to receive the vacation prize, they must purchase a product or service or pay an amount in advance. In some cases, victims end up purchasing a real product or service, without ever receiving their vacation prize. In other circumstances, the victims send money and personal information to never hear from the scammer again.

4) Foot-in-the-Door Scam
While this “scam” may not actually be fraudulent in its entirety, the victims have often been deceived into participation. In some instances, businesses will contact consumers and offer them the opportunity to win, or to be entered to win a vacation prize, by merely sitting through some sort of sales pitch. Timeshare and door-to-door sales companies sometimes use this tactic. While the prospect of winning a free vacation may sound enticing, the reality is that the high-pressure sales tactics often employed by the company offering the prize, result in victims purchasing products that cost much more than the prize offering is worth.

For more information on protecting yourself from becoming a victim of fraud or to check out a company’s BBB Business Review, visit vi.bbb.org (Vancouver Island) or mbc.bbb.org (Vancouver)

JUNE 2011 SENIOR LIVING MAGAZINE VANCOUVER ISLAND
JUNE 2011 SENIOR LIVING MAGAZINE VANCOUVER & LOWER MAINLAND