How to prevent fraud in hotels

Hotels can be vulnerable to scams because there are so many ways that scams can operate, from fake booking websites to fraudulent credit card transactions

Hotel scams are fraudulent schemes targeting both hotel guests and hotel businesses. These scams can take many forms, including fake booking websites that trick guests into paying for non-existent reservations, phishing emails or phone calls pretending to be from the hotel asking for sensitive information, or misleading promotions designed to capture credit card details.

Key takeaways

• Credit card fraud. Unfortunately, hotels are frequent targets for credit card scams, where stolen or fake cards are used to make bookings or payments. This can lead to chargebacks, financial loss, and a dent in your hotel’s reputation.
• Fake booking website. Fraudsters sometimes create websites that look just like your hotel’s official site to trick guests into booking rooms that don’t exist. This can lead to lost revenue and upset guests who might blame your hotel for the scam.
• Invoice scams. Fraudsters send fake invoices to your hotel, hoping your accounts team will pay them without realising they’re not legitimate. These scams can be particularly damaging, especially if large sums are involved.

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