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US Annual Bogus Hotel Booking Transactions Amassed $220M

The US hotel booking transactions from bogus sites amassed to $220M annually, reports Los Angeles Times. These fake websites victimizes around 2.5 million travelers per year, adds the outlet.

Because of the growing concern on this issue, five Congress members wrote to the U.S. Department of Justice asking for it to investigate on these "hotel booking scams" that creates "consumer confusion," WJLA.com reported.

How Do Hotel Booking Scams Create Confusion?

In an interview with LA Times, Maryam Cope, vice president for government affairs at the American Hotel and Lodging Assn., explained how these scams work. Cope explained that these scams use bogus sites that may appear legit with their logos and emblems similar to the famous hotel chains they copy.

With a tiny screen from a smartphone, a consumer may not readily discriminate the difference when he or she views and books reservations online, Cope said. Thus, using your smart phones to make reservations for your next holiday destination should be avoided, the news site warns.

Reported Cases

Different bogus transactions also have various reported outcome. Cope explained that for instance, some readily get the commission from the deal, which does not include the amendments, upgrades or requests the clients specifically asked for. For other deals, Cope said the clients' deposit money is already considered lost as no reservation has been credited to them, despite their payment.

"If you book the room online you may not find out there is a problem until you show up at the front desk," Cope said.

How To Avoid Being Scammed

1. Investigate on the Company's History

Investigate if the company has a complaint history. Check it via Better Business Bureau's website, bbb.org., advises Seattle Times. The website also suggests to "type company's name - and the word 'scam' - into an online search box" and note what results show.

2. Verify Promotions  

Cope also told LA Times, "If the hotel booking site doesn't look right, it probably isn't. If you suspect something, call the hotel directly."

You must think the same way about promotions. If you feel that some promotions are too good to be true, they most probably are.

Get the official registered numbers of the hotels and call them. Don't worry, they are more than willing to entertain you because they would want to resolve these things that could potentially blemish their good name.

3. Avoid Wiring a Deposit

Some who are tricked on home , apartment-rental, and vacation home scams on Craigslist, were asked to wire a deposit, notes Seattle Times. The outlet states that this kind of transaction is "always a red flag if that's the only way money is accepted".

These clients would then see that there's no real address as advertised, or the real owner never advertised it for rent, or the rental address actually exists but could not be utilized due to poor maintenance or was closed, Seattle Times explains.

Seek other payment methods such as Paypal or other secured payment gateway.


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