A stark warning from Booking.com highlights a dramatic 900 per cent increase in travel scams over the past 18 months, with AI playing a key role.

In 2023, Australians lost a total of $2.7 billion to scams, with 20 per cent reporting they had fallen victim to holiday scams. Nearly 1 in 5 victims lost $500 or more, as AI-wielding fraudsters employ more sophisticated tactics.

With searches for ‘last minute holiday deals’ surging by a whopping 250 per cent over the past months as we approach Christmas, the experts at AIPRM compiled a list of the top AI-driven threats travelers should watch out for this holiday season.

Sleigh the scammers: AI-powered travel scams to watch out for this Christmas holiday

1. Fake airline and hotel booking websites

Thanks to AI, scammers no longer need to be tech experts to create convincing websites that mimic legitimate travel booking platforms. Often advertising irresistible prices for flights and accommodations, these sites lure travelers with offers that seem too good to miss. Fraudsters also often play on urgency, using phrases like “limited-time sale” or “only 1 left” to push consumers into making quick decisions. Once you input your details, scammers can steal your personal and financial information, leaving you with a ticket to nowhere and out of pocket.

Protect yourself this holiday by being extra vigilant when booking travel online. Watch out for suspicious URLs, small spelling errors or anything that feels off about the website’s design or offers. Double-check through official channels and read verified reviews before submitting your personal information. As a rule of thumb, if an offer seems too good to be true, it probably is.

2. AI chatbots offering fake travel deals

AI-powered chatbots can be used by scammers to impersonate customer service representatives, offering huge discounts on flights, hotels, or holiday packages. These bots may ask for sensitive personal information or prompt users to pay upfront for non-existent trips.

To avoid falling victim, verify any deals or offers you find online through official travel websites and avoid providing payment information through unfamiliar channels. If something feels too rushed, it’s a red flag. Double-check all details and confirm through official customer service numbers or emails before finalizing any travel booking.

3. Phishing emails and text messages

One in five people click on AI-generated phishing emails, with a shocking 65 per cent tricked into revealing personal information through input fields on websites linked in those emails. Scammers are using AI to craft highly convincing phishing content disguised as legitimate companies. Imagine receiving a text or email claiming your flight is canceled, and to avoid losing your reservation, you must click a link and enter your payment details immediately. The pressure to act quickly could lead you to inadvertently put your financial information into the hands of fraudsters.

To stay safe this holiday season, never click on suspicious links or provide sensitive information through unsolicited emails or texts. Always check the sender’s email address, and be cautious of any communication that asks for personal details. If in doubt, contact the airline, hotel, or travel agency directly.

4. AI-generated holiday reviews

Fake AI-generated airline reviews have skyrocketed by an eye-popping 189%, while Tripadvisor alone flagged a record 2 million reviews as fake on its platform last year. With the rise of AI tools like ChatGPT, scammers can now generate hundreds of seemingly genuine, glowing reviews in minutes, making it harder for travelers to distinguish between real and fraudulent content.

To avoid being duped, cross-check reviews across multiple sources and don’t rely solely on reviews from travel booking websites. Instead, check independent review platforms and social media for additional feedback. Pay attention to patterns – if a place has an unusually high number of extremely positive reviews posted in a short period of time, it’s likely a red flag that they’ve been generated by AI or planted by scammers. Authentic reviews tend to be more balanced, including both positive and constructive feedback.

5. Fake travel itineraries and AI-generated images

While many travelers nowadays use AI to help plan their trips, scammers are also taking advantage of this technology to create professional-looking itineraries designed to deceive. These fake itineraries often feature attractive holiday packages that promise an unforgettable vacation at an unbeatable price, with AI-generated images used to promote false activities, making everything seem enticing. Once you send a deposit or full payment, you might find that your dream holiday doesn’t exist at all!

To steer clear of sneaky fraudsters, stay alert when presented with offers that seem too good to be true and verify the source. AI-generated itineraries may appear polished, but they often contain subtle inconsistencies. Check for missing or mismatched details and examine the photos closely – AI-generated images can have imperfections like unnatural lighting or blurry areas.

Christoph C. Cemper, founder of AIPRM said: “I believe that a (false sense) of urgency, no matter how well explained (using Generative AI) is the top red flag for any kind of scams, including those for booking trips and holidays. Nowadays, nearly anything can be faked with AI so if it is ‘too’ well written, ‘too’ good to be true in the offer, or ‘too nice’ in pictures, then I would be especially careful.”

“The most common form of AI scam is a phishing ‘offer’, that lures the user into providing their personal or payment details too soon/too early based on vague promises that seem too good to resist. Such impulse actions are used to harvest the data as quickly as possible, without much to do once the data is revealed. I know of cases where the legal and police system were busy for months due to an identity theft incident where the victim barely remembers engaging with.

“If you think you have fallen victim to a scam, as painful as it is, any kind of revealed information needs to be rendered useless. You can hardly move to another place, so fake ecommerce orders can still happen, but locking down your credit card is the first and most simple thing to do. Contacting your bank as soon as possible is essential.

“While reporting the incident to the police or a cyber-crime unit is recommended, it’s worth noting that these reports often result in education for the victim rather than immediate resolution.”