Navigating Travel, Loyalty and Hospitality Fraud

by Alex Lvoff 4 min read November 21, 2023

It’s that magical time of the year! The holiday season is fast approaching, and folks everywhere are gearing up for festive travels and family reunions. Unfortunately, holiday travel can sometimes lead to unforeseen circumstances, such as fraudulent activities orchestrated by scammers who impersonate property owners on well-known vacation rental platforms. These fraudsters employ schemes designed to deceive unsuspecting travelers into making payments through unsecured channels, resulting in significant financial losses for the gullible victims.

Digital identity and hotel fraud

Airline and hotel fraud encompasses illicit activities aimed at airlines, hotels, booking platforms, and other travel accommodation services, including car rentals and excursions. These services often utilize loyalty programs to incentivize repeat patronage through point-based rewards. The widespread adoption of such loyalty programs has extended their appeal beyond the travel and hospitality sectors, consequently attracting fraudulent activities. Perpetrators of airline and hospitality fraud employ a range of tactics and different techniques to execute their schemes, leveraging various online forums, marketplaces, shops, and public messaging platforms.

Hotels are custodians of valuable guest data, encompassing contact information and payment details. Their operational model involves serving a large pool of potential customers who are making limited visits. Consequently, compromising a hospitality employee’s account could grant an identity thief access to millions of consumer records. Moreover, hotel employees are frequent targets of foreign governments aiming to procure confidential travel records to facilitate the tracking of specific individuals and groups.

In contrast, restaurants primarily store transaction records with fewer customer details. However, the landscape is evolving as more establishments adopt online ordering capabilities and loyalty programs. At present, cybercriminals typically focus on the high volume of point-of-sale transactions.

As travel booms, fraudsters find new paths

According to a recent Deloitte survey, Intent to travel between Thanksgiving and mid-January is up across all age and income groups. While reconnecting with friends and family remains paramount to travel during the holidays, fewer Americans are restricting their travel to visiting loved ones. The share of travelers planning to stay in hotels surged to 56%.Fraudsters will always take advantage of current circumstances, and with more people traveling again, they have taken notice — and action.

The following techniques have been identified as the most employed by cybercriminals to target customers of airlines, hotels, and hospitality-related organizations:

  • Travel-themed phishing and fraudulent travel agency operations, sales, and advertisements of travel fraud-related tutorials.
  • Sales of compromised networks, user accounts, and databases containing reward/loyalty points and personally identifiable information (PII) that could be utilized for social engineering, money laundering, and other attack vectors.

Since the emergence of cyber-enabled crime, services and activities facilitating travel fraud have been extensively promoted and sought after by threat actors. Cybercriminals mainly leverage stolen card-not-present (CNP) data and reward/loyalty points obtained from compromised bank accounts to procure flights, accommodations, and other travel-related services.

Furthermore, threat actors persistently refine their strategies for harvesting reward/loyalty points through compromised accounts, deceiving victims into disclosing their travel-related documentation and data and circulating updated guidelines for circumventing hotel and airline reservation services, amongst other activities.

Protecting travelers and improving the customer experience

Combatting hospitality and hotel fraud requires collaboration between industry stakeholders, government entities, and financial institutions. Travel professionals should focus on:

  • Enhancing data security: Invest in robust cybersecurity measures to protect guest information, payment systems for CNP, and loyalty programs.
  • Implementing identity verification: Utilize advanced technologies, such as biometric authentication and behavioral analytics, to verify guests’ identities and prevent account fraud.
  • Educating staff and guests: Provide comprehensive training to employees on recognizing and reporting suspicious activities. Educate guests about potential scams and advise them to book directly through official channels.
  • Sharing information: Establish platforms to share intelligence and best practices to stay ahead of evolving fraud techniques.

Acting with the right solution

As the travel and hospitality industry continues to thrive, so does the risk of hospitality fraud. Travelers and hoteliers alike must remain vigilant to protect their finances from various fraud schemes prevalent today. By staying informed, taking proactive measures, and fostering collaborative efforts, we can create a safer and more secure environment within the travel industry.

Experian’s identity verification solutions power advanced capabilities across the travel lifecycle. With trusted data and advanced analytics, you can gain a complete view of your future guest to improve risk management and offer an enhanced, frictionless customer experience.

*This article leverages/includes content created by an AI language model and is intended to provide general information.

Related Posts

Building for Bots in the AI Age: Separating Legitimate Agents From Fraudsters

See how NeuroID helps businesses distinguish legitimate AI agents from fraud bots, while Agent Trust verifies agent-initiated transactions.

October 29, 2026 by Laura Burrows
2026 Retail Banking Identity and Fraud Report 

Learn how banks can convert rising fraud investment into protection customers recognize, value and feel in our recent report. Read more!

October 28, 2026 by Laura Burrows
One Platform, Fewer Handoffs, Faster Decisions

The average credit union manages between 100-300 vendor relationships, and nearly a third have no dedicated staff managing them. What was supposed to drive efficiency is stunting growth and compromising the member experience. Application volume is continuing to rise, and consumers expect a loan decision at digital speed. But for credit unions, meeting that expectation isn't the only goal. They must also continue to make the right lending decisions while also prioritizing risk management. The institutions pulling ahead aren't the ones with the most tools. They're the ones that have turned credit, fraud and decisioning into a single, coordinated system. A single loan decision touches: Credit data Identity verification Fraud signals Decisioning logic Reporting Rarely does all of that live in one place. More often, it’s stitched together across separate platforms, each with its own contract and its own support line. When a credit view and a fraud view are generated separately, they must be reconciled instead of read together in the same instant. Every handoff is a place where a decision slows down and a signal gets missed. It's why a fraud pattern that would be obvious next to the credit file often surfaces only after the funds are already gone. Fragmentation also makes it harder to optimize lending strategies over time. When data, analytics and decisioning are disconnected, credit unions have less visibility into what's working, what's changing and where strategies need to be adjusted. An integrated decisioning ecosystem closes those seams by design, with credit, fraud and lending strategy running on one platform and accessed through a single Application Programming Interface (API). Identity and compliance capabilities can be an integrated decisioning flow. The data doesn't need to be reconciled after the fact because it was never separated in the first place. Stop overengineering, start removing friction When decisioning underperforms, the instinct is to build something more custom: a proprietary model, tighter segmentation, more configuration.  Custom modeling has its place for institutions with the scale and data to justify it. But often, for small or mid-sized credit unions, the bigger opportunity is a flexible decisioning strategy that uses a strong, continuously refreshed model. This shouldn't be either/or. The right approach gives credit unions a strong decisioning strategy today, with the ability to introduce more customized analytics and modeling as their needs evolve.  The same principle applies to strategy management: credit unions can gain greater control through self-service capabilities as they build a more sophisticated data science team.   That kind of flexibility is important as credit unions modernize their decisioning infrastructure. Research surveying more than 2,000 senior credit risk and fraud decision-makers across 11 countries found that organizations investing in unified platforms and modern infrastructure are moving faster and realizing the greatest Return on Investment (ROI).   As their needs evolve, credit unions can adjust decisioning strategies without introducing another layer of technology or relying on third parties to make every change. Until self-service is the right fit, choose a partner that understands what makes your credit union’s membership and risk appetite different from others.  Same member, same afternoon, faster answer Consider a credit union growing its auto and personal loan originations.  A member applies for an auto loan on Saturday afternoon. Credit data, identity and fraud signals are read together in a single real-time pass instead of separate reviews:  Most applications resolve immediately, approved or declined based on a more comprehensive view of the applicant. A smaller number are flagged for quick step-up verification and cleared within minutes. Only genuinely ambiguous cases reach an underwriter, who is working from one complete picture instead of reconciling multiple signals. The member has an answer before the weekend is over. The credit union books the loan before competitors even open on Monday. Built to scale This kind of process holds up today. However, the better test is whether it holds up eighteen months from now when application volume has grown, new products are live and the data flowing through the system looks nothing like it does right now. Future-proofing isn't only about handling more volume. It's about having room to be nimbler and make adjustments as quickly as the market changes. A credit union that relies on standard models within a decisioning strategy may want more customized analytics and greater control over its strategies tomorrow. Connect with us With more than three decades of credit expertise and one of the industry's largest data footprints, Experian helps credit unions do more than solve this year's friction. We're helping to build a decisioning foundation that scales, so growth becomes something the system absorbs, rather than something it must be rebuilt around. Explore More

October 21, 2026 by Zohreen Ismail

Subscribe to our Newsletter

Enter your name and email for the latest updates.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Subscribe to our Newsletter

Don't miss out on the latest industry trends and insights!
Subscribe