Anatomy of a Travel Scam

February 25, 2010 RSS Feed Print
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Research the company offering the deal. Some scams are easy to spot, but even deals that have an aura of legitimacy can turn out to be fraudulent or misleading. "When you're offered $99 for a seven-day getaway to Mexico, I think common sense dictates that there is some kind of catch," says Saglie. "I think the consumer is perhaps more readily subjected to practices that on the surface may not be that obvious but … that do end up inflating the actual cost of the vacations above and beyond what companies are used to advertising." 

To make sure the deal is sound, do some background research on the company that is offering it. "It never hurts to research even the well-known names, but if it's a company you've never heard of, definitely research them because you have no idea what kind of reputation it has until you do your research," says Southwick. To help consumers, local Better Business Bureaus maintain reliability reports on a wide range of companies. 

With the rise of online travel promotions, it has become even more important for consumers to do their homework. "Some of the best opportunities exist online, but some of the major pitfalls live on the information superhighway as well," says Saglie.

Tags:
travel,
fraud,
vacations

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Just returned from St Maarten and ran accross the same company. Did not pay the full amount and tried to decide if this was for us. This article made me more sceptical thet I should proceed

Bob of IL 9:00PM March 12, 2012

The BBB doesn't check most companies unless they have complaints. Some travel scam companies will create two layers of corporations. The parent corporation maintains an A+ rating with the BBB and denies any association with the "affiliate" company when complaints arise. Meanwhile the affiliate, who sells themselves as a subsidiary or satellite office of the parent company, uses the A+ rating to sell dubious travel club packages. A specific example is Member Services Group LLC of South Carolina. They are a parent corporation with a BBB A+ rating that is used for travel club scams being sold to American tourists in St. Maarten by an "affiliate". This is not an isolated case of this pattern of fraud.

Joe of NJ 7:17AM June 07, 2010

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