From Bangkok to Dhaka: How APAC Can Tackle the Rise of Travel Fraud

As international travel rebounds post-pandemic, fraudsters are packing their bags too.

Travel scams are surging globally, with the Mastercard Economics Institute reporting a sharp increase of 18% in the summer season and 28% during winter across 2024. While the world is getting back to exploring new destinations, opportunistic fraudsters are taking advantage of eager tourists—and the Asia-Pacific region is squarely in their crosshairs.

This rise in travel fraud is not just an inconvenience to consumers—it’s a compliance risk and brand threat to travel agencies, online booking platforms, payments providers, and even banks operating across borders.

Let’s unpack the latest trends and spotlight how APAC regulators and businesses can step up to mitigate the rising tide of travel scams.

🛫 The Travel Sector: A High-Risk Fraud Frontier

Mastercard’s new research confirms what many already feared: the travel industry is now one of the most targeted sectors for fraud, especially during holiday surges.

Key findings:

• Fraud linked to tour companies is 4x higher than other industries.

• Scams often involve phantom tours, false itineraries, or vanishing vendors.

• Taxi and car rental scams account for 66% of travel fraud in Jakarta, compared to just 2% in Hong Kong or Barcelona.

• Fake booking platforms and deepfake confirmations are fueling a rise in pre-departure fraud.

In essence: your dream getaway could become a digital nightmare.

🌏 Asia-Pacific in the Spotlight: High-Risk Cities

The report names Bangkok, Hanoi, Jakarta, and Dhaka as high-fraud destinations. What makes these cities vulnerable?

1. High volumes of inbound budget travelers.Tourists looking for low-cost deals are more likely to fall for “too good to be true” offers.

   
   

2. Fragmented regulatory oversight.In many APAC markets, travel operators are lightly regulated or operate in grey zones—perfect for scammers.

   
   

3. Unregistered vendors and cash-heavy economies.In cities like Dhaka or Jakarta, many tour and transport services operate informally, making digital trail tracking and KYC nearly impossible.

   
   

4. Cross-border scams targeting outbound travelers.Chinese and Singaporean tourists have reported fake visa service websites, doctored hotel confirmations, and scammy international travel “agencies” operating via WeChat, Facebook, and WhatsApp.

   
   

📉 The Cost of Inaction: Risk for Businesses and Brands

It’s not just travelers who pay the price. Banks, fintechs, OTAs (online travel agencies), and payment processors suffer from:

• Chargeback fraud and disputes

• Loss of brand trust in booking and insurance platforms

• Increased regulatory exposure due to money laundering risks in cross-border payments

• Reputational risk for financial institutions enabling fraudulent transactions

A travel scam that starts in Bali or Bangkok can end up as a fraud claim against a bank in Kuala Lumpur or Sydney. That’s the nature of today’s interconnected economy.

🛡️ How APAC Businesses and Governments Can Respond

✅ 1. Deploy AI-Powered Fraud Detection in Booking and Payments

Whether you're an OTA, digital wallet, or travel insurer, AI and machine learning can help flag:

• Irregular merchant behavior

• IP address mismatches

• Duplicate bookings with stolen cards

• Deepfake documentation

Case in point: A major Malaysian e-wallet provider recently adopted biometric risk scoring to detect mule account usage tied to travel booking scams.

✅ 2. Break Down Data Silos Across Borders

Data sharing between banks, travel platforms, regulators, and telecoms is essential to identify patterns of abuse—especially when scammers operate across jurisdictions.

Countries like Singapore and Australia are already piloting multi-stakeholder data sharing frameworks. Others should follow suit.

✅ 3. Launch Real-Time Scam Alerts for Travelers

Banks and fintechs can take a cue from Hong Kong’s Anti-Deception Coordination Centre, which sends scam alerts via SMS and push notifications to travelers making foreign transactions or booking travel-related services.

APAC players should consider:

• Travel fraud awareness campaigns during peak seasons

• Real-time push alerts when unusual merchant codes or geo-spend spikes occur

• QR code verification tools for local tours and transport operators

  
  

✅ 4. Regulate Tour Operators and Ride-Share Platforms

Governments can elevate industry standards through:

• Mandatory registration of tour agencies and car rental firms

• Licensing that includes AML/CFT compliance checks

• Digital receipts and transaction traceability for all tourist-facing services

This is particularly urgent in countries like Thailand, Vietnam, and the Philippines, where unlicensed operators dominate the travel experience.

📦 Before the Trip Begins: Early Detection Is Key

According to Mastercard’s report, trip planning fraud rose 12% in 2024—largely due to doctored images, phishing confirmations, and scam travel portals. The line between booking convenience and scam risk is thinner than ever.

Trust tip: Travelers—and platforms—should validate merchants using trusted travel aggregators and only transact via secured channels with fraud protection (e.g., credit cards, e-wallets with built-in fraud tools).

🧭 Final Thoughts: Building Safer Journeys for the Digital Nomad Era

As Asia-Pacific becomes a top destination for remote workers, digital nomads, and post-pandemic travelers, the stakes are only rising.

Travel fraud isn’t just about tourists—it’s about the integrity of our financial, regulatory, and digital ecosystems.

It’s time for APAC businesses, banks, and governments to work hand-in-hand, combining smart technology, cross-border cooperation, and real-time intelligence to secure every journey.

Let’s keep fraud out of the itinerary.