Beware the Travel Insurance Traps: Holiday Travel Surge & Winter Weather Risks
With the holiday travel season approaching, scammers are targeting consumers seeking a peaceful getaway by offering fake travel insurance policies and fraudulent add-ons. These scams can lead to financial losses, identity theft, itinerary cancellations, and false coverage when travel plans are cancelled, or items are lost in transit.
Holiday Travel Surge
As demand for flights and hotels increases, fraudulent websites and fake agents start advertising exclusive travel upgrades or insurance deals. A recent Federal Trade Commission report reveals that 55,000 Americans reported travel scams, resulting in a median loss of nearly $1,200 for each victim. Besides the financial loss, many people and families save and plan for special vacations with loved ones, only to have their dreams shattered by travel insurance scams. Low prices, instant approval, and guaranteed refunds lure vulnerable consumers. Fraud victims often realize their coverage never existed only when they try to file a claim or use their “exclusive” offers.
Winter Weather Risks
Scammers often use winter weather conditions and flight disruptions to promote their “emergency coverage” or “weather cancelled protection” schemes to unsuspecting consumers. They create a false sense of urgency that attracts skeptical travelers, but these offers do nothing once your payments are made, leaving you stranded and uninsured.
Protect Yourself
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Proceed with caution by carefully reading the certificate of insurance in its entirety to determine what exclusions or limitations may apply and be sure to investigate the insurance company’s reputation.
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If the offer is unsolicited or feels too good to be true, it likely is; pause and verify with legitimate sources before proceeding.
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If the policy language is unclear and disguised as coverage when it may not be, think twice and consider purchasing a travel policy from a different company.
Report Fraud
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If you think you’ve been scammed, report it to: DISB Enforcement and Consumer Protection Division: 202.727.8000
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FBI Internet Crime Complaint Center: [Home Page - Internet Crime Complaint Center (IC3) ] or call 202.278.2000
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Federal Trade Commission: [[email protected]]