Travellers Losing Thousands to 'Expedia' Imposters
A network of scammers have been fraudulently using the company name Expedia Inc. to trick consumers across North America out of thousands of dollars. Earlier this month, Better Business Bureau (BBB) started receiving several complaints from consumers about the scam, with some reporting losses of as much as $4,800.
The scam begins with an internet search for the customer service numbers for Expedia. However, the numbers listed in the search results connect consumers with an individual who is impersonating an Expedia customer service representative. Unaware of the scam, some consumers asked the imposter to confirm or change their existing reservations that were previously made through the Expedia travel site. The impostor informs the consumer that the company’s site is experiencing problems and that they will need to purchase gift cards in order to receive their refund or make changes to their bookings. Others were duped with fake promotions while trying to create travel plans.
Consumers reporting this scam hail from 17 different US states, as well BC, and together, the losses are approaching $13,000. A victim in Victoria told BBB that the scammer said she could offer a cheaper price for his trip by booking over the phone when compared to the price on Expedia’s website. This was because of a new partnership promotion with Google, which was available for a limited time. After over 40 minutes on the phone with the scammer, he was instructed to purchase $500 worth of Google Play gift cards to pay for his travel arrangements. The scammer tried to get more money by telling the victim that 2 of the 5 card numbers he provided were invalid, and so he would need to purchase an additional $200 worth of Google Play cards. The scammer even offered to conveniently charge the $200 to his Mastercard if he did not want to purchase more cards. “I got very nervous and said I would call her back. She was very persistent that she could not hold the rate much longer. When I called back, that’s when I knew I was scammed, as it was not a legitimate Expedia phone number”.
Another victim from Idaho, USA told BBB that the scammer kept telling her to, “purchase (additional) gift cards, saying that he had to merge the cards together,” and that she, “was going to be well reimbursed.” Several victims said the scammer also stayed with them on their cell phones while they purchased the gift cards.
Scammers will always try to impersonate brands and businesses that consumers recognize and trust. They are riding on the credibility and reputations of these companies, with the hope that consumers will not be paying enough attention to notice the scam. While brand impersonation is a big problem, the growing number of reports about scams involving gift cards is another major concern. Consumers need to remember that gift cards should only be used as gifts, not for payments or anything else.
Expedia is a BBB Accredited Business with an A+ rating. In a statement, the Bellevue, Washington-based company said:
“We are happy to team up with BBB to educate people about this scam and share tips on how they can protect themselves. Our goal is always to ensure travellers have a seamless and trouble-free booking experience with us, and it’s incredibly unfortunate that scammers have disrupted our customers’ well-deserved vacations and travel plans. Rest assured that we are also working hard to identify ways to prevent this from happening in the future.”
Expedia is already taking steps to counteract these scams. Some of their efforts include working with popular search engines to reduce the occurrence of fake ads, making its customer service contact number more visible, and adding information about these scams to its customer service portal.
BBB is sharing the following tips with consumers:
· Gift cards are only for gifts, NOT payments. If you are speaking with someone and they instruct you to purchase gift cards so you can share the numbers at the back with them, it is a scam. Gift cards cannot be used as payment for services, debts, taxes, bail, or any fees.
· Trustworthy companies will never demand that consumers pay money upfront so that it can later be refunded to them. This is a huge red flag.
· Do not buy gift cards for people you do not know. This includes people you have met online that you have never seen in person.
· Register your gift card. If a retailer allows you to register your gift card at purchase, take advantage of that option. Registering your card makes it easier to keep track of any misuse and can potentially end up protecting money stored on it.
· Using a search engine does not guarantee getting the correct number for a company. Always go directly to the company’s website to find their contact information. Large companies often have a ‘Contact Us’ button or a help hotline number directly on their webpage.
· Report it. If you believe you have been a victim of a gift card scam, report it immediately to:
2. Canadian Anti-Fraud Centre (1-888-495-8501); 3. the company that issued the card. Tell them that the card was used in a scam and ask if the money can be refunded to you. While it may not be possible to stop funds from being withdrawn, it is important to alert the company to the fraud; and 4. the retailer where you purchased the card.
Retailers can also consider implementing policies to help reduce victimization through gift card purchases, such as setting gift card purchase limits, putting up clear warning signs about these scams, restricting the redemption of gift cards for other gift cards, and enhancing employee training. | 
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